Member Info for kign

Nitro, East Coast Cluster is the Endurance project by BP, Equinor, Total & Shell injecting into an aquifer whereas Harbour's injecting into the depleted Viking gas fields. I think they are trying to re-use the old Conoco gas pipeline (LOGGS).

HBR pays more than £2 for every £1000 of government tax...

while Barclays paid £1...
... Amazon only paid less than 50p...
... Google paid 5p
... Apple paid 0.08p!

so 100mmboe crossing from 2C to 2P!

so what's after this? there's no volume yet the buybacks don't support a price floor. is there something wrong with the LSE algorithm.

The problem with enquest is the very high opex due to the nature of their operations. While there's great potential 2c resources in Bentley and Bressay, it will be difficult to develop concurrently with an unstable government.

With oil price dropping back down to the 60s, I hope HBR will consider reverse merging into Kosmos which is US listed, has great reputation in the oil and gas industry, has significant future 2p reserves + 2c resources and will achieve ~100kboepd production by 2024 with the GTA start up!

I'm afraid any changes to EPL will only be reversed by Labour, you've already seen how strongly Labour has responded to the lifetime pension allowance. So why risk another distraction?

Money will be better spent investing outside the UK now in a less hostile environment. In fact, it's also time for HBR to consider relisting in the US/Asia so we will be out of the socialist news loop here.

20B over 20 years,. I think possibly a mechanism to have a fixed floor price for CO2 I think or a guarantee to purchase CO2 credits/subsidise CO2 offset taxation... so no real spending by the government.

If say, £50/t of CO2 of tax credits can be achieved and HBR's Viking CCS can store 10Mtpa, that's £500M/yr of tax credits applicable to both the EPL and ring fence tax! This move will instantly give value to CCS industry and would certainly pay off for HBR!

https://www.upstreamonline.com/exploration/shooting-fish-in-a-barrel-harbour-energys-latest-deep-water-exploration/2-1-1418199

Bampo gamechanger? 13-15 Tcf estimated!

Some good points from the call in my view:
- LC very vocal on the EPL & AK has shown very competent knowledge about financing an acquisition
- Recognised risk of Labour increasing tax further & removing the tax breaks
- Definitely no more UK assets acquisitions
- Clear understanding of the CCS business uncertainties and hinted to me there's still opportunity to give up Acorn (IMHO)
- Also acknowledged shareholders who have been holding on for so long
- Material ~499MMbbl addition of 2C resources for Timpan & Tuna
- Also acknowledged 2P reserves should have been higher

From what I gather from the Q&A session:
- Their criteria has not really changed from before i.e. buy cash-generative producing assets (>50kboepd) with nearby opportunities and in fiscally stable countries + "oil-friendly" countries
- Might be mistaken but did AK say M&A could increase debt and push leverage to >1.5 temporarily until 2024 (so >6B incl. existing debt acquisition???)
- Target might be based in the US since they have been doing some groundwork for financing there...
- Norway still an option...not aware of anyone else selling besides Shell?

did I miss anything else?

what's going on? which asset is the one they have to pay tax upfront?

https://www.energyvoice.com/oilandgas/north-sea/487933/windfall-tax-an-incentive-for-north-sea-operators-to-phase-delay-spend-report-finds/If the investor has incurred his project investment costs prior to 26th May 2022 and has substantial income in the period 2022-2025 the EPL 2 has a major negative impact on his post-tax returns. The negative effect is particularly pronounced when the income subjected to the EPL 2 occurs in the early years of the producing life of the field.” ... that's Tolmount?

share price sunk with this news... CCS has negative value to business?

https://www.businesswireindia.com/eig-completes-acquisition-of-25-of-repsols-entire-global-upstream-business-83367.html

EIG Completes Acquisition of 25% of Repsol’s Entire Global Upstream Business

Friday, March 3, 2023 11:10AM IST (5:40AM GMT)
EIG’s Breakwater Energy acquires stake for $4.8 billion

Washington, United States:
EIG, a leading institutional investor in the global energy and infrastructure sectors, today announced the completion of its acquisition of a 25% interest in Repsol Upstream, a newly-formed, gas-weighted exploration & production company comprising Repsol’s entire global upstream oil and gas business.


Breakwater Energy, a wholly owned subsidiary of EIG, acquired the 25% interest in Repsol Upstream for total consideration of approximately $4.8 billion, including debt, with Repsol holding the remaining 75%.


Repsol Upstream owns and operates Repsol’s globally diversified portfolio of upstream assets, comprising more than 600,000 boe/d of production and operations in 15 countries, including the United States. The portfolio generates significant free cash flow that should support a meaningful dividend, while also maintaining relatively low carbon intensity versus peers. Both Repsol and EIG foresee the potential to list the business in the United States from 2026 onward, subject to favorable market conditions.

.. the endgame?

not sure which way oil price will go with a war... quicker route to nationalisation?

time to handover to a younger more outspoken CEO with a more ambitious vision...

https://www.energyvoice.com/oilandgas/north-sea/decom/487543/dana-submits-draft-plans-for-western-isles-decommissioning/Dana Petroleum has submitted draft paperwork for the removal of the Western Isles FPSO, though the fate of the vessel is yet to be decided.....Given its design life of 20 years on station – of which only seven have been used so far – potential re-use would appear likely, especially on the back of record demand for newbuild floating systems in 2022.Originally designed for a 15-year lifespan (achieved 7) for base case of 45MMboe reserves, is this the impact of EPL?

what to do next? sell?

https://www.bbc.co.uk/news/business-64833390.amp

time to exit LSE and list elsewhere

...unless UK launches its own 45Q

https://www.energyvoice.com/oilandgas/north-sea/487372/cnr-international-ninian-oilfield/

CNR International has decided to shut down Ninian, one of the greatest oilfields in the North Sea, due to “challenging” UK market conditions.
The Canadian oil firm cited “prevailing regulatory and economic conditions in 2022, along with the increasingly challenging commercial outlook in the UK” for the move.
CNR International is “accelerating the abandonment” of its remaining two platforms at the 45-year-old oilfield: Ninian South and Ninian Central; the latter being the largest platform ever constructed for the UK.
The company has also written down 65 million barrels of oil equivalent from its proved reserves, as the field has become “economically unsustainable”.

be prepared...HBR should withdraw from Acorn asap!

actually my point is that Equinor has overpaid considering recent deals in the UK North sea and company valuations or has the market undervalued current UK oil and gas companies? :)