As you know I love you to bits, but you are making an assumption that politicians care one bit about financial consequences in the run up to an election. The modern age has eliminated all relations to common sense and use all means to get into power. Essentially this means a bunch of unelected "street terrorists" makes for good stories to get into power. "Let's kill oil & gas", "The green energy don't need fossil fuel", "Gretha Thunberg should have a permanent seat in UN and all western governments". The louder and weirder topics they scream about the more attention and popular they get. Goes for many other political areas than oil&gas. If someone makes a lot of money they are automatically targeted for extra tax regimes. How dare they!!! Just very different than what my generation grew up to believe a democracy is.
They are not receptive to logic until after the election. For us this means that at the earliest that clarity for new energy exploration will happen early 2025 and we have to foot the bill until then. This does not mean there cannot be a reversal. The tories could win (If Srinak leaces), or Labour could get scared about workers revolt and make new policies apply for future and not backwards.
What I don't understand is that Phase 1 is on hold. Maybe RRE has a different plan than HHR. The only cost is on shareholders if HHR folds, and RRE can take over the scraps for less than what going to production is, no?
We now have an announcement, a direct feed-back to Byron and the latest financials. Who can safely say that has any consensus among them? Who would be better informed about state of affairs. It is one big contradiction and I only saw Byron referring to RRE's continued support. It wasn't articulated in the official statements.
If the project continues I agree this is a good entry point for a position, but the risk is hard to quantify. We have the gas, we have the funds, we have everything lined up but HHR/RRE has stopped the FDP/FID process because of Labour's stated policy changes. So the risk is less profit? HHR has reduced my profits by not taking things serious in due time.
HHR Price at posting:
0.7¢ Sentiment: Hold Disclosure: Held
(20min delay)