Ann: UK Southern Gas Basin - Further Operational Update, page-41

My thoughts:
1)Fiscal policy is unclear by likely to find some certainty in the next 6-8 months. Could be sooner if Labour actually grow a set and clarify their position.
2) Capex to opex sounds doable in the current climate. Supply chain operators must be screaming for work right now with the number of project being deferred or abandoned.
3) At current gas prices, the project is economically sound (notwithstanding the capex and funding issues).
4) $23 mill in the bank and currently trading below cash backing.
5) New leases MUST be close.
6) The sellers have had 2 months to unload at these levels, so I expect we are through the majority of it.
7) Shell are still yet to announce the sale of their assets. Presumably our project deferment and fiscal uncertainty has put a big hole in their valuations though.
8) Renewables are going through a tough time optically
8) The spectre of a Europe wide war has forced the govt to announce £75bill spend on defence in the next few years. That’ll need quite a bit of oil and gas .
9) The offshore petroleum license bill is going through parliament at the moment, and should be legislation in 4-6 weeks
10) Govts around the world are pulling back from the 2030 energy cliff, which means they will have to rely more heavily on fossil fuel.

All in all, there’s still plenty in our favour for those brave souls prepared to back HHR in its current unloved state.