IMO, the company isn't saying anything further at this point...

IMO, the company isn't saying anything further at this point until the Labour party provide clarity over their throw away comment about closing the "Loopholes".

This is in relation to the Tax incentives and the development capital rebate, the removal of which would almost certainly scupper future development in the North Sea, so yes, it's a pretty significant throwaway line.

The fact that Labour are openly supporting the roll out of new gas fired power stations says a lot about their thinking on the subject. No responsible government is going to put the green agenda ahead of immediate safety and welfare of the population. And they all understand the basic principle of "keeping the lights on".

Given that the company is lobbying " industry bodies, industry partners, contractors, unions, MPs and other stakeholders to understand the precise plans and to highlight the danger of damaging and self-defeating policy" it is understandable that those conversations will be kept private.

Meanwhile, we will wait for the balance of the 33rd round of licenses to be awarded. Hopefully, this will work out well for HHR, and provide further value to their asset base.

At current prices the market cap is $14 mill with $23 mill (net) in the bank, and a well advanced project that presumably has some residual value in the current environment. I'd put this in the deep value category, whilst understanding that the timing of the recognition of that value is uncertain.

That will depend on a couple of things 1) how long it takes the sellers to lose faith and capitulate 2) When (not if) the government and Labour start to provide certainty over fiscal policy, and 3) a general recovery in the energy sector.

On the last point, I am reading lots about the expected recovery in the sector, not only on a pure value basis, but also the likely recovery in demand for Oil and Gas as supply continues to diminish. Ironically, this year could be a big year for Oil and Gas prices.