Positive impacts on farmout discussions in the UK are being felt as new tax incentives to promote investment in oil and gas begin to take effect
Finder is currently undertaking a farmout process to secure a farm-in partner to fund an exploration well to test the Gem Prospect. Finder presented the Gem prospect at the AAPG and PESGB Business and Exploration Opportunities Show (BEOS) in London in September as part of its farmout campaign.
UK - North Sea Finder has built a substantial acreage position in the North Sea. Our entry into the North Sea was well timed ahead of the current global energy crisis, the effects of which are being felt strongly in Western Europe and this is having a positive effect on North Sea exploration. Supply constraints and strong oil and gas prices are expected to drive exploration to replace depleting reserves.
Quarterly Report | September 2022 ASX:FDR The UK Government recently introduced an incentive to encourage investment to address the energy supply shortage in the UK, called the Investment Allowance. The Investment Allowance provides a tax saving of up to 91p for every £1 of qualifying investment in oil and gas.
(In English...They can do a 10-15M farm-out deal per prospect and the UK government will REFUND over 90% of that back!!)
The combination of factors described above are contributing to a recovery in oil and gas investment in the UK. Finder’s Infrastructure-Led Exploration (ILX) strategy means we are well positioned to take advantage of this recovery. In these favourable conditions, Finder is running farmout processes on each of the five licences we hold in the UK.
They are telling you in black in white what's going to happen. Can't get much more clearer than above. Hopefully, everyone is set.
IMO, news WILL drop at any moment as per Investor update from a few weeks ago.
GLTAHs
FDR Price at posting:
9.4¢ Sentiment: Buy Disclosure: Held
