The mixed messaging is killing us right now @aero39. The 8th...

The mixed messaging is killing us right now @aero39. The 8th March announcement is contradicted by the half yearly one week later. Then we have @Byron with additional information from the directors. (which is welcome information) I am actually wondering why the 8th March announcement was made at all.

Looking at some of the other projects that would be relying on the Investment Allowance to underwrite their projects

	Field	Status	1st Production	Owners
1	Rosebank	Post FID	26/27	Equinor 80% Ithica 20%
2	Cambo	Pre FID	28	Ithica 100%
3	Teal West	Post FID	25	HIbiscus 100%
4	Greater Buchan	FDP	26	50% Neo Energy 30% Serica Energy 20% Jersey Oil and Gas

I'm sure there are others, @sergeant will know a few, but the point is none of them have made a public announcement about "uncertainty in the UK Gas sector".

A really good parallel to HHR's current situation is Jersey Oil and Gas. They are 100% free carried for 20% of the project after farming out their original 100% interest. (sound familiar) As a minority holder they have made no announcements about the project. So what?
Well HHR SP between 19/1 (day prior to Labour policy announcement) and 20/3 has dropped an incredible 74%. Meanwhile JOG has dropped around 19%.

It's a field day for conspiracy theories but IMO it has a lot to do with HHR's own messaging. The April farmout was a disaster, lack of finance resulted ambiguity over whether HHR will retain 40 or 20% and "uncertainty in the UK gas sector" shot us in the foot.

I'm with @Byron on this one when he said "The question is how capable are they really in getting out of this mess!!! nothing else matters, what are their options???" I have a few suggestions

- hand operatorship to RR
- trigger the 20% position with 100% free carry
- let RR make any future announcements
- either use the staff that are on board to get some new licenses outside of the UK or,
- cut staff to an absolute minimum and retain HHR as a single asset vehicle being the 20%

While I would love HHR to retain the option of 40% it's clear the market dislikes ambiguity. I also think that RR are more likely to advance the project if they are locked in at 80%.

Or we could all sell up and put our money into JOG?