Shell will pick this up for peanuts
What a disaster this outfit really is |
Long and short of this now, they have now confirmed 25% of 131bcf EUR development - the Selene gas discovery. They have no cashflow or other income generating assets so given the flip in strategy to international - it gives them something to monetise and move the proceeds abroad with.Cash |
Came in at P90 level, so lower volumes, but 100m gas column with no H2S and a simpler overall development.They should monetise at the earliest.Cash |
though volume estimates have been cut. what is commercially recoverable and its commercial value (25%) relative to DELT's market capitalisation. Is the sale value of DELT 25% greater than £7m? |
Lift off day! Excellent news, should see a nice 50% rise. Well done for those who stayed in. |
That looks like a bullseye. Sweet gas, very commercial, low cost development. Real value?
Sweet gas is natural gas or landfill gas that has only trace amounts of hydrogen sulfide (H2S) and carbon dioxide (CO2). It's non-corrosive, requires little refining, and is safe to transport and market.
Sweet gas is preferred for sale and transport because of its heating value. In contrast, sour gas contains measurable amounts of H2S and must undergo further purification and refining. |
Hey up.... we're off :-) |
Good spot Steel ... |
 UK Government confirms rise in oil and gas headline tax and investment in clean energy
Chancellor Rachel Reeves also confirmed £2bn ($2.6bn) for 11 green hydrogen projects, which are “amongst the first commercial-scale projects anywhere in the world”.
Ed Pearcey October 30, 2024
Power Technology
Rachel Reeves, the UK’s Chancellor of the Exchequer, has delivered the first Labour Party Budget Statement for 14 years, and confirmed the anticipated rise in oil and gas industry headline tax rate.
The headline tax rate will rise in a few days to 78%, among the highest in the world.
She also extended the tax’s application by an additional year, running until 31 March 2030.
In September, the UK Offshore Energies Association (OEUK), the trade association supporting companies in the offshore power generation industry, published a letter highlighting the risks of Labour’s ‘windfall tax’ for the industry.
The letter, signed by more than 40 companies, explained that the windfall tax will put thousands of jobs at risk, affect companies that are critical to the UK Government’s industrial strategy and hinder continued progress toward net-zero targets.
A collaboration between the new government and the oil and gas industry is essential, argued the OEUK, for the government to realise the benefits of a homegrown energy transition that supports jobs, skills and companies in the UK.
Reeves said on Wednesday the changes will make sure the “oil and gas industry can protect jobs and support our energy security”.
Keir Starmer’s party came to power in a huge landslide victory, and promised to toughen the Energy Profits Levy (EPL), also known as the windfall tax, which was first introduced in 2022 following a huge rise in crude oil prices.
However, prices have largely normalised since Russia’s invasion of Ukraine, leading many industry players to call for an end to the tax.
The tax and allowance changes are aimed at discouraging new exploration within the UK’s oil and gas fields but are also likely to gradually reduce returns for companies operating in the sector, many of whom have been there for years and have invested hundreds of millions of pounds.
The Chancellor also confirmed £2bn for 11 green hydrogen projects, which she said would be “amongst the first commercial-scale projects anywhere in the world” and would total 125MW of capacity.
The projects have been on hold for almost a year while awaiting confirmation of the funding.
The government also announced be a new, multi-year carbon capture and storage investment, as well as £3.4bn to increase energy efficiency in homes.
However, investment and development details for Great British Energy, a body to be “owned by the British people and deliver power back to the British people”, are yet to be announced.
But the government expects to allocate £100bn in capital spending on the project over the next five years.
Before the election, Labour said the body will partner with industry and trade unions to deliver clean power by co-investing in leading technologies, providing more than £8bn over the next parliament. |
2 tugs contracted from 5 Nov for Valaris 123 rig move:
Presumably logging and fluid sampling etc., is complete and they will be in the process of the plugging and abandonment phase as originally announced on 23 July. A prognosis should be announced very shortly now
GLA
Edit 04/11/24: AHTS now fixed for the rig move with a start date 6-8 November. |
"Reeves said on Wednesday that the 100% first-year capital allowances and the decarbonization allowances will be preserved.Such allowances are seen by the industry as crucial for encouraging oil and gas producers to keep investing into North Sea fields, allowing them to offset some money spent on exploration and extraction against the tax. " |
IG index is ok |
Trying to buy this but no quote available online and limit order doesn't go through either. |
What do you reckon the timescale would be on any sale cashandcard? |
100% FY allowance left untouched in budget. Although tax rate increased by 3% on UKCS production.Cash |
Interesting they are taking their time on Selene and doubt the market will hear anything until next week after that initial report. The longer it takes the better? Regardless, it's bitter sweet, because it will (at best) set them up nicely to invest into a foreign territory as they exit the NS. Significantly below where it should be. Definitely need to bring in external negotiators so they do not run the risk of another Pensacola.Cash |
The Reeves effect is affecting the whole market. Paddling in opposite directions.With tomorrow's budget, we'll at least know, the bad and the good....and the bad.The business of the EPL (Energy Profits Levy) should already be in the price. I suppose there's always a chance of a nasty surprise. Who knows with this lot. I think we would have heard via the rumour mill. Expect the macro to settle once the details are digested. As for Deltic, it's a simple "Man from Del Monte" moment when the drill results are announced. |
surprised the share is not over 10p given the last rns and expectation of a good result. |
Rig due to move off Selene the next day or two. We'll possibly or probably get an RNS to say so along with a brief update/insight to the flow. Confident of a positive direction of travel. I'm in for more on the slight pullback.Full geology and flow analysis results later in November I'd expect. Along with their plan for going forward. Will be an interesting moment. |
Btw...NMS for Deltic is 7500. Six times is 45000. |
How many shares did you buy? Trades that are six times the NMS (normal market size) for a stock can be delayed by one hour after execution. |
Last trades showing 11.38, something going on as I have bought since. |
The inevitable shake in action. Suits me. Confident of a positive result here. How positive we'll see. I fancy 21p if we get best case. |
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