Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
MMs playing games. Probably pushing the price down to support a large purchase.
Thank goodness, you don't intend to post on here again. Very tired of your drivel cluttering up this message board. Mind you based upon your previous track record you'll change your mind in a few days. Goodbye.
Royal Assent was given to this bill yesterday (14th).
Seems to be moving quite quickly through the Lords. 3rd reading shortly?
The first reading seems to have finished. Or, at least. they're discussing something else now. Has the first reading of the bill passed? Was there any amendments?
JamesSimon - I agree 100% with what PC01 has written. Your approach to posting on this board when you clearly have done little if any research and have limited understanding of the issues is hard to fathom. For your own good and to save further embarrassment to yourself I suggest you take a break from posting whilst you attempt to do some constructive research into the companies you are considering investing in. I doubt you will take this advice and will continue to post on this board. Fortunately I green boxed you some time ago and can only read your posts if I make the effort to view your profile.
Extract Part 2
"Lower exposure
Other firms with existing UKCS production may be less exposed, in Slater’s view. While Harbour Energy has significant revenues from production guided at 195,000-210,000bl/d oe for 2022, it also has c.$3bn of tax losses and a planned c.$1.3bn capex spend for 2022. “This means that Harbour will have to pay the windfall tax, but that it will also get some degree of offset from its existing capex plans,” says Slater.
AIM-listed IOG will have the Southwark field, the third and final stage of phase one of its Southern North Sea Saturn Banks gas project, coming onstream later this year and then ongoing development of further fields in later phases over the coming years—giving it “a significant ongoing capex spend to offset against its production income, including the windfall tax”, Slater notes. Arden expects IOG to pay some element of windfall tax due to the timing of its spending, although it allows that spending plans may be rephased in light of the windfall tax. But it still sees the firm generating “significant cash over and above funding its capex requirements”.
“The incentive to recycle UK production cash flows into new UK capex should provide a boost to companies looking for farm-out partners for development projects,” says Slater, which could boost pre-production UKCS players such as Jersey Oil & Gas (JOG), Orcadian Energy, Parkmead Group and Deltic Energy. Existing producers looking for capex spending opportunities outside their own portfolios may now find farm-in opportunities to projects such as Orcadian’s 79mn bl polymer flood Pilot or Parkmead’s sour oil Greater Perth Area developments more attractive, in Slater’s view.
JOG’s Greater Buchan Area project should also benefit from increased tax efficiencies for spending in the early years of the project. And, in Slater’s view, it should further encourage counterparties to pursue a farm-in agreement and the start of Feed spending “sooner rather than later”.
For more exploration-focused Deltic, the “windfall tax could help create incentives for existing partner Shell to bring forward work on Deltic’s licences”, says Slater. This could include confirmation of planned 2023 drilling at the Selene prospect, as well as follow-up drilling on Pensacola assuming success on a well due to be sunk in the third quarter. Further farm-outs or potential asset sales by Deltic could also be boosted, he suggests."
Extract Part 2
"Lower exposure
Other firms with existing UKCS production may be less exposed, in Slater’s view. While Harbour Energy has significant revenues from production guided at 195,000-210,000bl/d oe for 2022, it also has c.$3bn of tax losses and a planned c.$1.3bn capex spend for 2022. “This means that Harbour will have to pay the windfall tax, but that it will also get some degree of offset from its existing capex plans,” says Slater.
AIM-listed IOG will have the Southwark field, the third and final stage of phase one of its Southern North Sea Saturn Banks gas project, coming onstream later this year and then ongoing development of further fields in later phases over the coming years—giving it “a significant ongoing capex spend to offset against its production income, including the windfall tax”, Slater notes. Arden expects IOG to pay some element of windfall tax due to the timing of its spending, although it allows that spending plans may be rephased in light of the windfall tax. But it still sees the firm generating “significant cash over and above funding its capex requirements”.
“The incentive to recycle UK production cash flows into new UK capex should provide a boost to companies looking for farm-out partners for development projects,” says Slater, which could boost pre-production UKCS players such as Jersey Oil & Gas (JOG), Orcadian Energy, Parkmead Group and Deltic Energy. Existing producers looking for capex spending opportunities outside their own portfolios may now find farm-in opportunities to projects such as Orcadian’s 79mn bl polymer flood Pilot or Parkmead’s sour oil Greater Perth Area developments more attractive, in Slater’s view.
JOG’s Greater Buchan Area project should also benefit from increased tax efficiencies for spending in the early years of the project. And, in Slater’s view, it should further encourage counterparties to pursue a farm-in agreement and the start of Feed spending “sooner rather than later”.
For more exploration-focused Deltic, the “windfall tax could help create incentives for existing partner Shell to bring forward work on Deltic’s licences”, says Slater. This could include confirmation of planned 2023 drilling at the Selene prospect, as well as follow-up drilling on Pensacola assuming success on a well due to be sunk in the third quarter. Further farm-outs or potential asset sales by Deltic could also be boosted, he suggests."
Extract Part 1
"UKCS firms look at investment allowance options
Producers eye spending to offset windfall tax hit
AIM-listed independent Kistos is “assessing opportunities in the UK that would enable us to take full advantage of the investment allowances implicit in the recently introduced Energy Profits Levy (EPL)”, according to the firm’s CEO, Andrew Austin. Other companies are also investigating upping planned spend to set against their windfall tax bills.
UK-listed Serica Energy is “evaluating additional candidate projects designed to increase the productivity of the Bruce hub” above its previous capex programme. Based on its current understanding of the EPL, the firm expects its planned c.£60mn 2022 light well intervention campaign at the Bruce Keith Rhum complex and its North Eigg exploration well to qualify for incentives, with each £1 invested by Serica offering an overall tax saving of up to 91.25p. “This will offset a large element of the EPL that would otherwise be payable on Serica’s profits this year,” it says.
"Our established strategy of investing in our portfolio to enhance production and create greater value means that Serica is well-placed to take advantage of the investment incentives included in the EPL,” says the firm’s CEO, Mitch Flegg.
“Serica is well-placed to take advantage of the investment incentives included in the EPL” Flegg, Serica
“Capex plans for 2022 are relatively light in the context of Serica’s production base,” says Daniel Slater, oil and gas research director at brokerage Arden Partners, while acknowledging that additional activities are being assessed. “Unless the company alters its capex plans, it is fair to expect it to have a material windfall tax liability, while nevertheless generating material cash,” he warns.
Enquest is another UK continental shelf (UKCS) producer where Slater sees the potential for plans to change. A late May trading update continued to focus on deleveraging, “but clearly the windfall tax now creates a new incentive to increase capex instead”, the analyst suggests, given its planned $165mn spend this year is “relatively restrained”. “If Enquest elects not to alter its capex plans, then we would expect it to pay a relatively material windfall tax bill compared to some others,” he cautions.
Troubled Hurricane Energy could also face a hit. “Given its focus on debt paydown, Hurricane has little in the way of confirmed capex plans,” Slater notes. “As such, we would expect the company to pay a significant amount of windfall tax.”
Drilling another well at its sole remaining Lancaster asset would be an “attractive offset” for the windfall tax. But Slater still feels that further activity at Lancaster is more likely to be based on field performance and geology rather than tax structuring. Hurricane could also opt to deploy Lancaster cash flow, buoyed by high oil prices, on new UKCS assets."
Petroleum Economist article, JOG gets a mention here: https://www.pemedianetwork.com/petroleum-economist/articles/upstream/2022/ukcs-firms-look-at-investment-allowance-options/?id=
Ditto. My daughter is returning to university this autumn - a change of career in the current economic environment. I advised her to invest in JOG (rarely advise on investments) and it currently looks as though it's well on the way to covering her uni fees.
theofficecat - The RNS says the accounts will be audited by the end of June and the AGM will follow. Given the timelines required to give notification of AGM it will not be held before July. Exceptional circumstances will apply.
The 7.45% rise is misleading. For most of Friday (13th) trades were around 245/248p then two small trades appeared after hours at around 235p creating an artificially low closing price over the weekend which was immediately "corrected" this morning.
Agree. Think this is positive for JOG.
Yes, makes you wonder where the reductions were. Of course, the likes of us are included within HL, Bell, Halifax etc which all increased.
Well, I’ve had enough of the rubbish posted by the little sh*t - no better than the stuff found floating in the toilet - so I’ve filtered him and I suggest the rest of you do the same or at least ignore his trolling. Hopefully this board can then return to its normally sensible posting.
A few weeks ago it crossed my mind that ST had been very quiet on JOG in recent months to the extent that he hadn't even made reference to the BoD changes. I suspected it was only a matter of time before he mentioned JOG. ST presumably feels more confident of JOG's prospects now. Yes, very welcome.
Many happy returns Dick.
I largely share your views. The climate for a deal has changed a lot in the last few months and as long as the BoD aren't too greedy I believe a deal can be done. It would have taken the new team, however experienced, a few months to get their feet properly under the table and it also depends on how much work their predecessors had undertaken. I'm hoping for some early news in the next month but am fully aware that these deals are very complex and could take a while yet.
Dick, I did realise it was an attempt at humour, though possibly influenced by a bad day with Eunice.
Abatt1 - Next week would be excellent. If not, hopefully before the end of March. Think Dick is being a bit pessimistic questioning the year.