What about Phase 2

It can be hard to talk about Phase 2 while Phase 1 is still not a certainty. But still......

IMO IF Phase 1 proceeds that at least the first part of Phase 2 ( Hodgkin 2C 100BCF) could be brought forward to take advantage of the Energy Profits Levy. The extension of the EPL to March 2028 allows 91.4% of any Phase 2 capex to be recovered while production would start after the EPL has finished so there would be no windfall tax.

While Hodgkin remains a discovered Contingent Resource it is contingent on Phase 1 infrastructure being available for use. The completion of infrastructure for Phase 1 should allow for a Phase 2 to be classified as 2P reserves.

My NPV for part of Phase 2 alone (Hodgkin) is 2.4 cents. (which I wasn't very excited about until I remembered that our current SP is 2.4!)

Is the market going to start pricing Phase 2 in yet? Of course not! However it is in HHR/RR hands. If they are successful with Phase 1 it will have the added benefit of allowing the acceleration of part of Phase 2.