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?
(20min delay)