From the statement:
In accordance with Rule 2.6(a) of the Code, EnQuest is required, by not later than 5.00 p.m. on 4 April 2025 to either announce a firm intention to make an offer for Serica in accordance with Rule 2.7 of the Code or announce that it does not intend to make such an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline can be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code.
If the offer is made and accepted, Enquest is Main Market listed anyway. |
Is there a time limit on the Reverse Take-over with ENQ please.
Full year results on April Fools Day I believe!
Are they still planning to move to the Main Market? I presume all is on hold what with further Triton problems and the Takeover discussions. |
Malcy -
It’s difficult to add very much to my last comment on Triton but frustrations have certainly built up, with Chris Cox’s comments showing clear annoyance that the Triton FPSO has not been maintained to the standard that Serica would themselves have done so.
But as I said before, whilst frustration is understandable, there are offsetting pluses such as the drilling on the Triton wells showing much better results than expected, the fact that production is deferred and not lost and of course that some upgrade work on the FPSO will enable extension of field life in the longer term.
Accordingly, I remain sanguine about short term news given that the value of Serica is not hit by such an engineering blip and remain confident about its position in the Bucket List.
There's not really any "offsetting pluses" - he really does talk nonsense. |
Over the past few years, this company has gone from one of the best and most promising operators in the UK North Sea to one of the worst. What a shame. |
waterloo01 I wish you luck with what you've got left. The reality though is you've got a socialist government in power for the next 4 1/2 years that will just keep on raising taxes, their tax revenue black holes are getting bigger. I cannot see taxes being cut in the north sea. So investing there and not diversifying is just completely insane. Ageing, decaying wrecks with several years oil and gas left before the wreck collapses then gets written off, buying of businesses with massive tax losses to reduce your tax bill on more decaying assets. What sort of strategy is that? Look at the UK market there's so many bargains out there with proper high quality companies that do actually have a strategy. Looking at this lame duck in my portfolio for the past two years going nowhere fast is too annoying to bear any longer. |
Sounds like it credit. In that situation you've absolutely made the right decision. There are plenty of other stocks to invest in without wasting your time on one you no longer trust the mgmt on. If only everyone took your stance and moved on. |
Sorry but that is my personal opinion dump and move on it is for me because I don't have any confidence with this management. You know you could go through with this deal and the company will just continue to have excuses with some made up story of a strategy. I have no spare time hanging on waiting for a burst of speculation that gets sold into before they decline to zero. Better off for me to move on and invest in companies of higher quality with better prospects. |
I reduced today by 25%. I wasn't happy with tailwind and should sold at that point. Not out though, as there is a lot of value, and a tie up looks sensible in terms of diversification, but ever more concentrated in north sea. Daft, at least while labour is in power. (Genius if the north sea tide turns) |
Personally I think the Serica management are just plain incompetent. Every deal recently has been poor the number of shareholders banging on their door telling them that the North Sea is in rapdid decline they must move away from it, it is being run down without any investment for starters on top of that its tax regime is one of the highest on planet earth. It's a no brainer do not invest in any more North Sea assets when will this management get it? Are they this stupid all of the time or is it another relapse? I'm just gonna dump these take the loss on the head this is only going to get worse beause Serica management do not have a medium term strategy. Its mentality is to run down assets until they don't produce any more. That is not a long term strategy it's a strategy for the BoD to fill their pockets with as much cash as they can then let the company decline, drawing large salaries in the process. Shareholders are being led down the Swanee. |
Some good posts from al today. Some of the best I've seen from him. Ticked up. Tailwind is indeed looking like a poor acquisition on operational performance. Tax credits were still worth a lot of value to serica. |
Indeed YasX I think we are on the same page on this. Very strange how people can read exactly the same RNS and come up with an entirely different conclusion.That's what makes a market I guess... Each to their own! I'm seeing a lot of rose tinteds, some wishful thinking and some polishing brown stuff around. |
All of this "noise" if I was to put it that way puts more pressure on a deal.
I'd estimate the chances went up this morning substantially. |
Oil,
I think the last paragraph of 7888 suns it up nicely. |
I very much doubt (without seeing detailed info of both FPSOs), that they could replace triton with a random FPSO. It's not even about production capacity or throughput! The process train is likely to be completely different and tailored to the fluids being processed by the asset! I suspect it would involve heavy capex to upgrade another FOSO |
Interesting, but that does raise the question as to if that could possibly be part of the equation although it seems not from that information. |
I'm no expert, but, at a glance, the warm stacked at Nigg "Enquest Producer" FSPO probably isn't suitable as a substitute for Triton, unless they could work with a reduced processing capacity:
Enquest has earmarked it for the eventual Bressay development. |
I seem to recall that marine hulls/vessels require a more thorough special survey at 25 years...extentions can be obtained but I don't think to 30 years...that said, FPSO's may be a special case...that it's never been drydocked is surprising... |
We certainly don't want to make the position even worse by taking on Enq paper at a poor valuation. I hope we walk away from a combination with that failing company. All production is not halted by the Triton downtime of course although we do need a more comprehensive assessment and timeline for that. |
"This does not help the negotiating position. The tone suggests there is no certainty of resolution of the problem by May and there may be even more trouble ahead."------YasxI totally 100% agree! It makes SQZ position significantly weaker! If I was negotiating on behalf of ENQ , I would literally say to my SQZ counterpart "you couldn't pay me enough money to take that rust bucket into my portfolio" then watch him squirm! As to more trouble ahead, unless they take significant downtime to catch up or overdue maintenance that has evidently been lacking for many years (or better still dry dock the FPSO), I would bet good money this isn't the end of our operational woes ! |
 The Tailwind Energy chickens are finally coming home to roost! The continuous operational issues being experienced at Triton didn't really require much hindsight! They could've been seen coming from miles away! Some of us were warning about the age of the assets being acquired at the time! I even asked Mitch Flegg a question in the Q1 2023 webinar on investor meet company about the quality & integrity of the FPSO and work done to maintain it (with a specific point about its uptime)! From my industry knowledge and people I had spoken to, I had my doubts! He regurgitated some marketing material that was fed to him and quoted figures of 90-95%! The realistic figure is closer to 60% as we have recently experienced!The history of the Triton FPSO gives some clues and leaves a lot to be desired! Ownership of the asset has been extremely complicated! Over half a dozen companies (inc Shell, Esso, Endeavour, Amerada Hess , Dana, Tailwind and a few others) all held a stake in Triton at some point. The stakes involved were divested numerous times. Companies looking to divest an asset typically don't spend money they don't need to in its upkeep as that's someone else's future problem.Triton has never been dry docked Typically FPSO's have a design life of 25 years. To get the full 25 years you have to be methodical when it comes to preventative maintenance and asset integrity programmes. Asset integrity becomes even more critical once you get to the final 5 years. When operators plan to utilise an FPSO for the full 25 years (or longer), they are usually advised to dry dock it and give it a more thorough service. The Triton FPSO began operating in April 2000. It's 25th birthday is in a few weeks time ! It has never seen a dry dock since first oil! In early 2023 while the accountants were busy calculating how valuable the Tailwind Energy tax losses were going to be in order to justify / rationalise one of the worst (and most expensive) acquisitions in recent North Sea history, some of us were highlighting the criticality of this aging rust bucket as make or break for this acquisition.Exhibit A :https://x.com/oilinvestoral/status/1623585546613170176?s=46&t=ySHTOHElP3t1B4beGtacxwExhibit B :https://x.com/oilinvestoral/status/1627595915513954305?s=46&t=ySHTOHElP3t1B4beGtacxwThere are many more tweets but I can't be bothered to search back. I also had many discussion on ADVFN highlighting similar concerns with certain vociferous posters! I was lambasted and told I was "talking drivel" and didn't know what I was talking about! I honestly can't say I'm surprised. I think we can all now categorically admit that we were sold a turkey! Private equity have well and truly stitched us up like a kipper! Before any accountant replies with "but Mercuria also hold SQZ shares", I would like to point out that they took multiples of their original investment out in cash during the sale to SQZ and any money they make on SQZ equity is a free kicker ! The past 6 months and catalogue of operational issues have highlighted our need to diversify away from the Tailwind liabilities we have acquired and specifically this rust bucket ASAP! These issues will not be fixed by a plaster and will require extended summer shutdowns or even potential dry docking! The other option is to limp along like this for the next 5 -10 years experiencing months of downtime per year! The merger with ENQ isn't great and neither is doubling down on the dying North Sea but at least it'll diversify the overall production base away from Triton and make it a smaller percentage of the overall production! These issues have definitely given ENQ an upper hand in negotiations and couldnt have happened at a worst time ! Best regards OilinvestorAl An extremely frustrated SQZ shareholder |
This job always had potential to grow in scope. Frustrating that the end date still appears unclear. I'd have hoped they'd have a clear handle on the scope by now. I like this company but their fortunes are reliant on a set of aging assets operating beyond their original anticipated design life. Having worked for Hess in a previous life I'm all too familiar with Triton. She's an old girl now. If there's any upside to an enquest deal (and I don't expect much) I think I'll sell and move on. I have no interest in Enquest paper. I think they're a poor company with a horrible track record that would be bust long ago if their CEO hasn't keot throwing good money after bad. |
hxxps://www.oedigital.com/news/523658-triton-fpso-not-expected-to-come-back-online-before-may |
Don't Enquest have a spare FPSO? |
Unfortunately the gas production is fully taxed so not even getting that benefit! |
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