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HiTec selling NEO is very different from NEO pulling out of Buchan. If NEO ownership passes to another party, this doesn't mean NEO is pulling out of Buchan. It might be precisely because NEO has Buchan (amongst other things) that HiTec think they can get a good price for NEO.
HitecVision are looking at NEO's future. Is this just a tax arbitrage ?
At some point Neo will be producing vast amounts of cash and will be paying lots of tax on it (which ever government is in charge). However, if they reinvest in Green projects (e.g. wind farms) the tax rate is lower. So won't the obvious buyer or partner be a firm investing in green projects ?
Same article on Bloomberg is not behind a pay wall.
I can't think of a reason ( nor is there any suggestion) why NEO would want to pull out of the JOG deal just because NEO's current owners might want to sell them - the whole JOG/NEO/Serica enterprise still makes very good business sense.
From Bllomberg: " Norwegian private equity firm HitecVision is weighing options for UK oil and gas producer NEO Energy, including a potential sale, according to people with knowledge of the matter.
HitecVision is working with advisers as it studies strategic alternatives for NEO Energy, which could also include merging it with another operator, the people said, asking not to be identified because the information is private.
HitecVision declined to comment. NEO Energy didn’t immediately respond to requests for comment."
MAYBE thats - merge with JOG !!!
I don't understand why Neo would want to pull out now after JOG has received $18mill. so far.It would be very unusual after completion of the farm-out wouldn't it?Are many people selling?
I’m hoping for 400. The only way for this going anywhere is selling the company.
Get lucky and get 300p for these, the analysts price targets look like a distant pipe dream -
Investors need reassurance from the company.
Neo have submitted the draft FDP - and pulling out would be very strange.
The PE model is to buy businesses, then sell them. That's how it works. A process would take 6 months to a year to complete. I don't see any reason to bail.
Will that be enough? The only thing we need is the development is actually happening. Everyone now fears Neo not going ahead. I don’t know much, but even after FID does that mean it’s definitely on? News like the link below doesn’t help either.
Down a bit further?
Until those at JOG responsible for IR (Tea Lady?) can convince an institutional investor to buy in, this stock will likely drift until some significant (FID, rig contract etc.) is announced.
Where next?
Being a jog holder you’ve no choice but to give up all ‘luxuries’ in life; yet you still have your Pound Shop receipt :))))))) good morning all have a lovely Mother’s Day. Keep posting everyone.
I'm happy with your 17 quid estimate Einbert - no need to convince me - I'm happy to trust your calculations
Sorry, just remembered, I’ve given up smoking.
Think some of us would love to see the £17 calculations :))))) or whatever you’d come up with. But I keep my word £6.99 I’ll buy you dinner.
‘Labour only made clear their policy on Feb 9’
Really would like an edit button.
Labour only made clear their policy of on Feb 9? Though they had been making all sorts of noises for quite sometime before then.
Thank you for your reply. I’ll buy you a good meal when share price gets to £6.99. Promise.
Yes and yes.
I can only imagine that the sums have been done by the clever back-room nerds who do the calculations and the results on the abacus are that it’s still profitable even with their currently worst estimate of what Millibrain and the Smelly Socks Lot might throw at oil companies from some lunatic tax-grabbing strategy.
Otherwise, why 1. Why would Serica have completed the farmin, with associated, non-negligible cost?
And 2. Same question really, why wouldn’t the JV just shut down the project and stop spending money if today they do not see it as being profitable?
The economics of a re-purposed, nearly new FPSO, in which NEO had an interest, together with shallow water and non-exorbitant development costs must (?) result in a reasonable return for inventors, despite desperate politicians, of all political hues, rummaging around in the depths of their fiscal resources to find something they can tax to pay for the ever-increasing benefits bill in poor old ‘Broken Broken’.
I remain mildly optimistic for this languishing stock.
Expecting or hoping for some encouraging news-flow in the near-future.
I might cut down my earlier forecast of £34 (or was it £43? Dick, I hope you can remind me) but I do see the broker consensus of £7 +/- as being rather pessimistic; they have to ‘temper’ their forecasts otherwise. 2 quid to 7 may not seem outrageous but 2 quid to what I calculate now to be £17 ( calculations can be provided on a cigarette packet if doubted) might, too easily, be doubted and hence lose any credibility.
Just wait.
The greedy politicians haven’t yet managed to kill The Greta Burkha Area and, as dim as he appears to be, I don’t thinks Millibrain will want, or be allowed by the unions, to.
Got to dash, that Mark X Jag is back. Needs his tyre pressures checked…
Just had this old geezer in in his Mark 10 Jag. 90 liters to fill her up.
Yes Einstein, what’s the your view on everything? Will Neo proceed with the development as planned? Will it still be viable if labour removes the tax relief? Not just me, a lot of us would like to hear your views. This board needs some good inputs as no one seems to be interested in posting.
Who?
I wouldn't describe his salary as necessarily luxurious, but he is certainly paid a lot more than I think he is worth to this company. (I'm not saying he should be criticized for leading the company down this blind alley, since it was done honestly and well-intention, but I don't see any point in continuing to pay him much more than he is worth to lead a company he appears, from the outside looking in, to be completely out of his depth at running.) But I fully respect, Einbert, that you will have a more informed view from your position on your cousin's petrol station forecourt.
Et tu AlbertEinstein?