Member Info for Tigar

Thanks for that Therapist

They have a built in EPL that sounds stable and fairer 75% tax is not the problem as such it is the fact that is all or nothing £1 profit accrues 75% tax without being able to claim all costs against it.

If oil goes to $200 I'm happy to pay 80% on anything over $120 for example, but not 75% on $70 oil with marginal profit on it. Unfairest Tax ever? well nearly as bad as Stamp duty a tax you have to borrow up front to pay!

I thought we had a production sharing arrangement in Malaysia, they pay their share of costs I remember when we had the production problem we received money? The arrangement I have felt is a bit like Magnus if it does well we win but if it fails we lose little.

Well that confirms the $7m divi saving from share buybacks has been added to buy back fund. Lets hear they have also assigned proceeds from Vietnam sale to buy backs?

I think it is being held down more by the possibility of M/A if we acquire some one will shares be issued? if we borrow more how much will that cost? if we take on a basket case we take on their debt? if we take on a partner to develop Bressay/Bently we commit to using FCF to the project, Jam tomorrow? of these possibilities I go for develop what we have.

Bentley has huge Tax losses already and its development would accrue EPL relief as well, we have EP a partner with some cash looking for Tax credits could get this huge field producing?

Money does not exist, it is trust if we all trust the man on your left he can take on all of that debt then we kill him and hey presto the debt is gone only the things he spent the money on remain.

The EPL predictive text, bah

And the extra money coming in is only subject to the 35% tax so most can be used to reduce debt, The employer has a bigger impact on lower profits once we get past $120 a barrel it is an epl below that it is robbery.

If Over 99% accepted 35% of face value of a bond for shares that are below then in pecking order they are on a tax fiddle with related parties , shorts are a related party too. New bond holders will make a killing when repaid at face value alldodgy ding,,?

Stevo12

As a query to Magnus $80m is this not subject to 40% reclaim from Tax credits my understanding was any profit share was after all costs and is subject to to a total $1bn payment to BP for Magnus but as we could use our Tax credits it meant $600m total post tax?

Both shares are bombed out so an all paper deal may make sense to both parties in my eyes..

Banburyboy

I agree was a bit disappointed too as I was expecting the $100m to be divided into the outstanding share's on Ex divi date, what is happening to the $7m not distributed is the divi saving on the cancelled share's being included into the buy back? fair enough if it is but I haven't seen that stated at any time?

I am shocked that Ed Miliband had not lead a consortium of JSO investors to build at least one of the proposed wind farms at 9 x cheaper than gas and no EPL to pay it seems such a no brainer?

Found the bit I have been looking for, not sure why we fully draw that in preference to RBL or running with less cash AB never seems to worry about finance costs? Though of course he is lending some of the money so gets some of that interest.

In August 2023, the Group agreed a $150.0 million secured term loan, which ranks junior to the existing RBL, in order to provide additional liquidity in advance of the October 2023 settlement of the 7.00% Sterling retail bond given the EPL-driven reduction in available funds under the RBL facility. This facility, which matures in July 2027 and incurs interest at SOFR + 7.90%, is forecast to be fully drawn in September 2023.

Onedb

That could be why we had 85m shares go through market one day last week, perhaps they have closed? rising oil price bombed out share price with about 4% divi about to be paid, you would have to be brave to keep adding to your short.

Stevo12

Thanks for example, I sort of understand but I do see that by allowing Interest to be allowed against Tax has encouraged companies to issue bonds rather than Equity as dividends are not allowed against it. Have often thought paying 9% to bondholders and not issuing Equity instead and paying dividends, Enquest is a perfect example that the financiers are the only ones making money from the oil.

Suppose shorts may be closed before the EX divi day?

Suppose getting IT servers delivered is just like getting a thousand ton furnace delivered from half way around the world.

Stevo12

A question If the Interest and decommissioning costs are deductible from the 40% Tax why should it be from the 35%Tax? not defending the EPL but if you already deduct a cost then why would it matter.

Contrarion123

Buying when the fear sets in! is that not bottom fishing?

Papegoja

I don't think the $50m we will have paid GE was ever listed as a debt> we have further reduced the RBL which will have and the repayment of the 7% retail bond will reduce the debt, if we have taken out $150m new facility if we draw the $140m needed for the 7% bond we will only have reduced net debt by the repayments to RBL but will have paid in full for GE, my gut is that we have a bit extra fire power with the new $150m facility and yes it may enable more drilling on Kraken