Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
SQZ results open with a sizzler:
“ Commenting on the results, David Latin, Serica's Chairman and incoming Interim CEO, stated:
"I am very pleased that Serica has delivered a strong set of results for 2023 despite significantly lower sales prices compared to 2022 and a full year of the UK marginal tax rate being at 75%. Any 'windfall' due to high commodity prices has long gone and the high tax situation is ill-suited to a mature oil and gas basin such as the UK North Sea. Its continuation will not benefit people in the UK either financially or environmentally.”
I was on a Twitter/X space this morning with Dr Anas.
Iranian oil sanctions in the short term at least are as much good as a chocolate fire guard.
A) Don’t take effect for the next 180 days ie after US election (as they don’t want higher gas prices to influence the result)
B) lots of nations won’t sign up to sanctions
C) tankers will be sent to third countries to reload for other destinations
He reckoned there was a $7-10 war premium in the price of which half had come off as matters didn’t escalate.
Link here if you want to listen, I think I summarised fairly well and accurately. There is a Q&A at the end https://x.com/anasalhajji/status/1781834646633722053?s=46
Another tax disaster in the North Sea.
https://www.energyvoice.com/oilandgas/north-sea/551900/windfall-tax-job-cuts-north-sea-hartshead-resources-2/?utm_content=182331334&utm_medium=social&utm_source=twitter&hss_channel=tw-1379070162
Seems we have a Middle Eastern war.
- 50 suicide drones apparently heading from Iran
- missiles launched from Lebanon
- cruise missiles and suicide drones from Houthi Yemen
- US jets scrambling
Most markets are shut but I do wonder about buying some gold from dealers at Friday’s closing prices…
Three thoughts. Surely with the gold price having fired up to $2400, you would think finance sign off has became rather more attractive than a few weeks ago. Secondly, the NPV calculations must be looking damn juicy right now. And thirdly, given the discount kefi trades to even NAV's done on $1750 gold... the gearing here is incredible.
IMO about now Kefi should be shooting the lights out. But it keeps slumbering so far...
There's plenty of very good no-win no-fee litigation businesses willing to do business - if you have a case.
Caselaw I have read is that 78% taxes do not amount to an appropriation under the ECT, whereas 90% definitely does. I suspect the labour party has had advice re the 78% which is why they are not doing any more than that.
Rockhopper v Italy was an interesting one, as Rock had bought their Italian assets from MOG potentially with an awareness that Italy was against developing them. But they were able to successfully sue not just for their costs to buy MOG, or for MOG's exploration costs, but missed profit on the entire project. (It was not a very big project, hence damages were "only" $185m plus interest etc). This would be very relevant to us given our projects and that they were also purchased from Xcite etc.
Anyway, my point is in triplicate. We are protected by the ECT, the politicians have pretty much thieved as much as they can from ENQ and the north sea already, and states are going to have to be mighty careful what they do preventing drilling etc on areas that have been granted exploration permits and or production permits.
There is a certain irony the Energy Charter Treaty was drafted up to prevent (mainly British) oil and gas majors being robbed by 3rd world despotic countries. How the wheel turns.
Even more interesting, paragraph 2:
"The UK’s announcement that it intends to withdraw from the ECT therefore comes at a time of great uncertainty, amongst an ever-growing exodus from the ECT that raises questions about the ECT’s future as a whole.
In the short term, it is important to understand that the UK has not actually withdrawn from the ECT (yet). It has merely announced its intention to withdraw. In order for the UK’s withdrawal to take effect, the UK needs to make a formal notification of withdrawal, which will take effect one year after notification.
Furthermore, even when the UK actually withdraws from the ECT, the UK would remain subject to a 20-year sunset clause, which continues to protect investments existing at the time the withdrawal takes effect. However, any new investments made after the UK’s withdrawal would no longer benefit from ECT protection."
Not that I think it is all that important. Rockhopper v Italy gave compensation where exploration happened but production was blocked. There's been enough investment in Bentley and Bressay we are well covered even before production. However any investments made in the few months are definitely covered since the UK has not officially left yet even if it has given notice.
Nice to see windfall prices back, even the Labour Party can’t steal more than c78% without falling foul of the Energy Charter Treaty and case law that says too much tax equals appropriation which equals damages. We are in a very good position as oil hopefully heads to $100+.
Nice that having been hit by windfall taxes, we are heading back to windfall prices.
Lots of draws in the US giving an extra boost today:
https://oilprice.com/Latest-Energy-News/World-News/Oil-Rally-Extends-As-API-Reports-Draws-Across-the-Board.html
I mean I've been here years, the shareprice is down, there have been no dividends and most of our hope for the future has been robbed by thieves. So I get why you would have to have an enormous discount to fair asset value to buy here.
Https://www.linkedin.com/posts/zimalco-group-logistic-transport-0077a01b4_team-zimalco-group-partenaire-de-hummingbird-activity-7180575586459795459-iPlj?utm_source=share&utm_medium=member_android
They are at least in discussions. Not surprising given the performance and histrionics from their other mining contractor.
Https://oilprice.com/Latest-Energy-News/World-News/Oil-Prices-Up-as-Iranian-Embassy-in-Syria-Leveled-in-Airstrike.html
Energy security continues to worsen as Ukrainians blow up Russian production, Houthis block Suez traffic and Middle Eastern wars look to escalate. Guessing Ed Milliband is blowing at windmills about now.
With oil up $5 in two days and more draws expected (the IEA has just thrown in the towel on their forecasts and revised demand up) then the best investment is to hold here and buy popcorn.
https://oilprice.com/Latest-Energy-News/World-News/Brent-Soars-Past-85-As-IEA-Recalculates-Supply-Demand.html