Member Info for Mirasol

"the flat-lining of the share price during about the last 2 years."

Ocelot means it in a medical sense - when the patient has died and the green line on the monitor just flat lines..............

"Can't see HUR suffering from a Wind Fall Tax when they'll just make it over the debt line."

You can't offset financing costs............

"The levy will apply to a company’s ‘ring fence profits’, computed with a number of adjustments,
and will be charged as if it were an amount of corporation tax.
The adjustments are:
finance costs are left out of account. This will mirror the provision that already exists for the calculation of adjusted ring fence profits for Supplementary Charge
decommissioning costs are left out of account. This will ensure that extraordinary profits are not reduced by decommissioning expenditure

"It is temporary and will be phased out when oil and gas prices return to historically more normal levels". :)

Given the governments need for cash , the likelihood that inflation will stay high, that energy prices will stay high hand there's an election due in a couple of years I'd bet it says until after the next election

Income tax was only supposed to be imposed for a year - 220 years ago................

https://www.gov.uk/government/publications/cost-of-living-support/energy-profits-levy-technical-note

https://www.gov.uk/government/publications/cost-of-living-support/energy-profits-levy-technical-note

that's an interesting point - you can get quite a decent seismic survey for the tax money!

"My main objection to the windfall tax is that we should be supporting the North Sea to maximise recovery for next 30 years. Norway a good example of what we should be doing "

historically tax rates have been higher in Norway than the UK - and the cost of doing business there is much higher and more bureaucratic than in the UK. They have bene able to save their oil & gas because to be honest they never really needed any of it in the first place - they were quite a rich, very small country, with very high social spending with a lot of hydro power before Ekofisk was found..

"Hardly ARRIVED is it!! ….More like thick as …..what’s the word I’m looking for!"

Executives on AIM? Could be worse I guess - no sign of Australians in cowboy hats.................

"It sounds as if you think that Loxley could be fast tracked with drilling, testing & production becoming a single continuous process as SS described the process working in Turkey"

Nearly two years in Turkey and no completed well yet - yup just the same as the UK

I don't think any oil company will suddenly shout "those B******* in London - we're off to the FI - get me Sam Moody right now" but all oil companies factor in taxation and the likelihood of more taxation all the time. I suspect the UK has gone down a short snake and that isn't bad for FI O&G

Those of us who have been invested on AIM for many years have seen this before - and it rarely turns out well for the small shareholders.

"Are the FI exempt from these new taxes?"

i'm astonished that people interested in this share appear to have zero understanding of the place they're invested in.

The FI is NOT part of the UK - it is internally self-governing, sets it's own taxes etc etc

That means

a) The UK Govt are not going to "help out" RKH in a semi-foreign country

b) UK taxes on O&G are not effective in a semi-foreign country

In some ways the new UK O&G levy is a good thing for the FI - it makes them more attractive cp the UK for anyone with international operations.

"Excuse my ignorance, but does this tax apply to EDR with their assets on land?"

yes it does - it's a sector wide tax

However EDR have Biscathorpe, and other onshore opportunities as well as Resolution offshore so they should be able to minimise the new tax paid

There is no need to panic but it really focuses attention on what do the company do next. So far CA etc have not really said anything about plans after the bond holders are paid off. It now is a matter of urgency to come up with a decent plan.

And that should not involve just drilling anything left in the portfolio. It's an old O&G truism that tax driven drilling is almost always a disaster. Better they think this through, and maybe get a substantial non-operated position in a currently producing operation .

"Am I glad I no longer live in UK...oh Yeah:)"

I'll bet you take advantage of the NHS , bus passes etc etc when you come home.............

"The question that springs to my mind is does M&A qualify for 90% windfall tax relief ?"

The answer is simple - NO - only investment in operations etc will qualify - corporate activity will be outside the ring fence

https://www.building.co.uk/features/whatever-happened-to-those-radical-planning-reforms/5117090.article

" it will become cheap and quick when our government as always takes the easy quick way out i.e. by forcing the issue of planning."

type Tory Party and Planning reform into google and see what you get

they've been running scared since they lost Beaconsfield and its interesting NO planning reform was promised in the Energy Road map - there are ZERO votes in planning reform in the UK

"2 substantial strategic investors have arrived: Forum and the investor group associated with Aleph."

ARRIVED? So they haven't been hand in glove with the BoD for the last couple of years Ocelot?