Ann: UK Southern Gas Basin - Further Operational Update, page-8

If this announcement is true it could be a pretty major turning point for HHR.

All stakeholders have expressed their desire to create a fiscal regime in the UK that will still attract and enable investment and activity in the sector.

Labour realise that they are going to kill all North Sea Investment unless they figure out a workaround with O&G Industry

This would be positive in respect to whole project economics, moving CAPEX into OPEX
This change would double the net profit when compared the project under Labours proposed O&G policies. Moving capex costs to opex takes advantage of the proposed 78% EPL. (effectively we receive a 78% deduction on lease and interest costs)

in respect of Hartshead funding, reducing the funding requirement that Hartshead would need to meet outside the RockRose carry
If HHR can lease rather than pay for equipment upfront it won't need anywhere as much debt and could retain their 40%

All of these negotiations appear incomplete so why has HHR made this announcement now? I am really hoping that it is because the negotiations have advanced to a point that HHR had to announce under continuous disclosure obligations.

Finally an announcement that actually deals with the challenges the JV faces and provides a potential way forward.

GLTAH
All IMO