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08:27 Or a statement that 88e is here for the long term. Some subtle hints dropped in earlier ANN's regarding the green future. Has any other explorer or producer made this commitment in Alaska yet? Not forgetting we are part of one of the smallest companies operating in Alaska

Good Foresight I'm thinking

keefy GLA

Hi Rab79 13:48,

You final thoughts had already got me thinking along those lines. I found bits in the 88e 2018 FY Report & elsewhere.

The Alaskan Government has approved a tax credit of A$26.03 million as at 31 December 2018 (US$18.35 million).
This amount has been fair valued as at 31 December 2018 and recognised as an offset against Exploration & Evaluation capitalised and recognised above within Other Non-Current Assets. The amount paid will be directly applied against the outstanding loan with Brevet.
The ACES program provides up to 85% tax credit for eligible capital expenditure. All expenditure is audited and must be approved by the Alaskan Department of Revenue. The tax credit is available as either:
- A tax refund received in cash;
- A tax credit against the future production tax, thereby reducing the total production tax in any given year; or
- A transferrable certificate, subject to certain conditions being met.
The ACES program provides up to 85% tax credit for eligible capital expenditure. All expenditure is audited and must be approved by the Alaskan Department of Revenue. Once approved, the benefit can be exercised in one of the following forms:
Apply the credit against the production tax, hence reducing total production tax liability in a given year; or
For unused tax credit, apply a transferrable certificate. This certificate does not have an expiry date and can be sold to a new third party; or
For unused tax credit, apply to sell the tax credit to the Alaskan Department of Revenue

I would say 88e have played a blinder here as they could have been waiting until 2026 for payback.

Courtesy of Kalkin Media: Rationale behind the transaction
This transaction accelerates 88E’s time line for realising value from the Tax Credits, which the State of Alaska was less likely to pay in full until 2026 under present projections.
A bigger part of the funds from the sale shall be utilized for completely repaying 88E’s present outstanding debt of US$16.1 million. This outstanding debt concerns FCS Advisors, LLC and the repayment was due to mature on 30 December 2022, and FCS has waived early repayment penalties.

One Step at a Time Guys. Ducks in a Row & all that jazz

GLA keefy

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