Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
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Does anyone know if Benitz is still CEO? I presume we would have heard if he had resigned, been fired , or been replaced but he has gone rather quiet.
Playing with his model railway maybe? I heard he is an enthusiast. Something be keeping him busy.
Says it all, instead of investing in and supporting our own industry we're buying Russian crude refined by India !! Its just a disgrace
https://news.sky.com/video/how-is-russia-exploiting-loopholes-to-sell-oil-to-the-uk-and-eu-13131191
Superbly put Dick and I guess we'll just have to import more of the stuff from the rest of the world and who cares that their carbon emissions are higher than GBA (insert any other UK oil & gas field) - the politicians aren't going to trouble voters with that kind of small detail. At least the politicians can point to the UK leading the way in decimating their own oil industry that produces less than 1% of global oil production each year. Please stop laughing at the back.
Excellent post DU - sadly our vote grabbing politician lack common sense. I hope we all live long enough to see how this all pans out, Mrs MPO considers me a greedy b...ard for not grabbing the 300p+ that has been dangled on a few occasions, she even sleeps with her purse just in case I get any bright ideas.
The theft called EPS???????????
Senior moment. I of course meant EPL
No-one has any EPS in the oil industry these days...........
Consider the following:
An oil company (before any kind of windfall event) habitually makes a profit before tax (pbt) of £100m. The "normal" oil price (Brent Crude - BC) that has allowed this company to make £100m pbt is $70 per barrel (pb).
A windfall event occurs (eg Russia invade Ukraine) and BC increases to $80pb.
Before the windfall event the oilco paid 40% tax on its profits ie £40m.
The Govt sees a chance to get its greasy hands on some money from a sector that's unpopular, possibly also picking up some cheap votes from people who don't understand anything, or are ignorant, virtue-signalling, sniveling runts - the kind any normal person would hate (I do). So Gov't pretends it's in everyone's best interests - and it's fair too (not sure to whom) - to impose a tax rate of 78% on all the profits of those dirty upstream oil producers. "Hoorah", cry the thickos (92% of the UK population). So, what's the pbt and tax situation now?
With BC @ $70pb the oilco made a pbt of £100m.
With BC @ $80pb, on the face of it, that £100m would increase to £114m. It isn't quite that simple, but I'm only dealing in principles and applying some broad numbers. Some would say: "hang on a minute, lifting costs and overheads won't increase just because BC does, so the oilco will make more than £14m extra". "Fair enough" I say, "so to compensate, let's forget about the fact that expenses like decommissioning, interest and capital allowances are all disallowed (ie oilcos can't deduct them from pbt)". I'll stick with my £14m extra pbt
What would the tax payable @ 40% have been on a pbt of £114m? Answer: £114m x 40% = £45.6m
And what will it be now, with EPL set at 78%? Answer: £114m x 78% = £88.9m
The difference? £43.3m.
So, additional (windfall) profit of £14m has led to additional tax of £43.3m
What rate of windfall tax (wft) does this mean the oilco is paying. Answer: 309%
Yes, that's right - 309% (43.3/14 x100) = 309
WTF is the oil industry playing at? Why isn't it shouting this from the rooftops? The rate of wft of course varies depending on the BC price. The Gov't has told us what a "normal" BC price is (it isn't btw - they've taken the average of the last however many years without taking any account of the years BC was in the gutter as a result of the Saudis opening the taps to hit the US frackers and, of course the Covid years).
I've lived for quite a long time and had a lot of experience. I don't think I've ever come across anything more dishonest than this tax, or anyone as devious as these politicians. Just shows how desperate things have become at the Treasury.
Irony is, it will lead to a lot less tax revenue in the medium to long term, as project after project is deferred, or cancelled altogether. Plus, fields will be decommissioned earlier - double the tax rate, halve the economic life. It isn't rocket science.
"That's for future politicians to fix". "We want money NOW. Don't care how we get it".
As soon as Labour clarify that only some allowances will be removed, or none, as I believe they have to, things will start moving very fast. The deduction for risk that the project doesn't proceed gets removed. FID is coming within months - and first oil not far off. EPL removed maybe one year after first oil. Tax losses and oil revs become very attractive for takeover. Hey presto £10 a share one way or another.
Anyone shelling out would be taking a view just as we have done. They might consider it a bargain. The (local) political uncertainty may well be an illusion as gov incumbent is faced with reality and U-turn is baked in. The global uncertainty has not eased which is bullish for POO and likely to focus minds on energy security and removing dependencies on unreliable/hostile regimes.
Unlikely to be NEO with their current parentage... I struggle to see anyone shelling out on the CNS for a current non producing asset (until the political uncertainty clears)... although I really hope I'm wrong on this
I remain very pro JOG over the medium term...
DYOR
With the tax losses we are sitting on I would not be surprised to read of a bid by one of our partners.
I suppose there's no rush but it could happen later this year.
Einstein
Good, I hope. As I say I may be misreading the situation, and my offshore knowledge is pretty much zero, but I'm surprised to see a Drilling Platform at this stage. Hopefully someone can run me through the process.
What does ‘Hmmmm’ mean? Good bad?
No.
Am I right in thinking that the FDP Approval could drop literally any day !?!?
Hope I'm reading MarineTraffic correctly but it shows Ocean Geograph at Buchan along with Well Safe Guardian, described as a Drilling Jack Up platform. This in turn is being visited by Esvagt Castor, a Standby Safety vessel with Highland Chieftan, an Offshore Supply vessel, approaching.
Hmmm.
Maybe they need this board for information :) glorious Monday everyone.
Nothing
Please do not conflate tobacco with fossil fuels. The majority of UK citizens go about their daily lives without the need to consume tobacco. Fossil fuels are an essential component of our daily lives and will continue to be essential for at least the next 30 years.
I would prefer that the UK purchases fossil fuels from local sources rather than depending on foreign states (often hostile to the UK) to provide us with our fossil fuel requirements.
Are you in the payroll of Putin or some hostile foreign state, determined to undermine the UK economy by promoting the destruction of the UK oil and gas exploration industry.?
Do you think we might expect a(belated) RNS tomorrow?
Reached! Blasted autocorrect
Https://www.marinetraffic.com/en/ais/home/centerx:-2.0/centery:57.6/zoom:6
Ocean Geograph has now rescheduled GBA and surveying away.
Hello Gengis, re "
Whether as as investors or simply consumers, we should all be more aware that almost all public pressure, in the press and elsewhere, is heavily funded by fossil fuel interests. Those interests use exactly the same tactics as the tobacco companies, of deny, deflect, delay."
Do you own shares in JOG - a fossil fuel company ?
Western Isles getting closer to returning for its refurb soon https://kingfisherbulletin.org/notice-map?noticeId=4100
I always wondered if JOG would look to pick up more licences in the 33rd round but after todays announcement it now looks almost certain they haven't https://www.nstauthority.co.uk/regulatory-information/licensing-and-consents/licensing/ I can see NEO have picked something up in the latest tranche. The way I see it JOG is now more or less a minority equity partner with Neo holding all the cards. Given verbier didn't turn out as planned when Equinor walked away I hoped they might have picked up a new licence to polish up like they did with Buchan and something to focus their efforts since Buchan is out of their hands. Does make you wonder what all the remaining JOG staff have to do day to day now Neo are running things.