Rheochem Share Discussion Threads

[davidosh] 28/3/2011 12:54

There are a few places available if interested...

[madghaffi] 25/3/2011 14:56

thanks leoboy

[euclid5] 25/3/2011 14:30

note this part - so we are not affected:

The Company's revenues from future field developments with approximately
less than 25 million barrels of oil equivalent, such as the Athena
field, will continue to benefit from the Small Field Allowance
sheltering up to US$120 million of field profits from the 32%
supplementary charge.

[euclid5] 25/3/2011 14:30

March 25, 2011

Impact of UK Fiscal Changes

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - March 25, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Ithaca Energy Inc. (TSX VENTURE:IAE)(AIM:IAE) clarifies the impact on the Company's near to medium term
financial position further to the recent announcement made by the UK government regarding changes to fiscal
regulations.

On March 23 2011 the UK government announced that it would be increasing the rate of supplementary charge from
20% to 32% from 24 March 2011, resulting in a 62% marginal tax rate. The following important factors should be
taken into account when considering the specific impact of the tax increase on the Company:

-- The Company's tax losses pool at the start of 2011 was approximately
US$215 million. This pool, combined with the Company's predicted future
capital expenditure programme, indicates no taxes are likely to be
payable for at least the next five years.

-- The Company's revenues from future field developments with approximately
less than 25 million barrels of oil equivalent, such as the Athena
field, will continue to benefit from the Small Field Allowance
sheltering up to US$120 million of field profits from the 32%
supplementary charge.

-- The Company has limited decommissioning liabilities, which minimises its
exposure to the announced differential tax treatment of decommissioning
costs.

The Company is continuing with its development of the Athena field and the core Stella hub. A review of the
Company's portfolio of existing appraisal and development opportunities will be conducted as details of the
draft tax change legislation emerge.

Notes to oil and gas disclosure:

The calculation of barrels of oil equivalent ("boe") is based on a conversion rate of six thousand cubic feet
of natural gas ("mcf") to one barrel of crude oil ("bbl"). Boes may be misleading, particularly if used in
isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the wellhead.

About Ithaca Energy:

Ithaca Energy Inc. and its wholly owned subsidiary Ithaca Energy (UK) Limited ("Ithaca" or "the Company"), is
an oil and gas exploration, development and production company active in the United Kingdom's Continental Shelf
("UKCS"). The goal of Ithaca, in the near term, is to maximize production and achieve early production from the
development of existing discoveries on properties held by Ithaca, to originate and participate in exploration
and appraisal on properties held by Ithaca when capital permits, and to consider other opportunities for growth
as they are identified from time to time by Ithaca.

Not for distribution to U.S. newswire services or for dissemination in the United States

Forward-looking statements

Some of the statements in this announcement are forward-looking. Forward-looking statements include statements
regarding the intent, belief and current expectations of Ithaca Energy Inc. or its officers with respect to
various matters. When used in this announcement, the words "expects," "believes," "anticipate," "plans," "may,"
"will," "should", "scheduled", "targeted", "estimated" and similar expressions, and the negatives thereof,
whether used in connection with the estimated production levels, actual production levels from the Beatrice
field, anticipated timing of production, barrels of oil equivalent in place, hydrocarbon composition or
otherwise, are intended to identify forward-looking statements. Such statements are not promises or guarantees,
and are subject to risks and uncertainties that could cause actual outcome to differ materially from those
suggested by any such statements. These forward-looking statements speak only as of the date of this
announcement. Ithaca Energy Inc. expressly disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statement contained herein to reflect any change in its
expectations with regard thereto or any change in events, conditions or circumstances on which any forward-
looking statement is based except as required by applicable securities laws.

FOR FURTHER INFORMATION PLEASE CONTACT:

Ithaca Energy Inc.:
Graham Forbes
CFO
[phone]
[e-mail]

[leoboy] 24/3/2011 18:43

recent broker note - TP - 25p

[rivaldo] 24/3/2011 08:11

I've sold mine for the moment after the North Sea tax increases yesterday.

There seems to be good liquidity here at present, so perhaps it's the wrong decision, but then again it's always good to be able to sell small cap shares without a problem and take profits.

I just wonder how the new taxes will affect sentiment as regards investment in RHEP's wider North Sea portfolio.

I may reconsider (or lose out!), but better to be safe than sorry.

[madghaffi] 23/3/2011 14:23

RHEP so it's James Faulkner of Watshot.com tipping RHEP

[madghaffi] 23/3/2011 14:00

apparently this has been tipped somewhere ?

[rivaldo] 18/3/2011 08:59

The share price is rising nicely despite there being no increase in holdings RNS yet. Perhaps on Monday morning.

Meanwhile the UK price still lags the Aussie price.

[rivaldo] 17/3/2011 08:57

Good spot GS, I look forward to RHEP's RNS later today.

[giant steps] 17/3/2011 08:12

Nice news in Australia, surprised we don't get the announcement here [yet!]



Gartmore continue to up their stake, now to 25.9% (was 24.7%)

[rivaldo] 17/3/2011 06:58

RHEP's price in Oz is back up to 0.25, i.e around 15.3p, a full 1p higher than in the UK.

[bobbyshilling] 16/3/2011 12:45

Not so much a bet, a calculated risk/reward I would say. 2000 bopd production to come in Q4 giving cashflow to appraise other discoveries on their blocks; pretty astute of Gartmore maybe.

[rivaldo] 16/3/2011 08:36

Great to see Gartmore increasing their holding again by almost 5m shares to 24% - are they playing some sort of canny game by selling a few and encouraging others to sell cheap, and then buying back in?

Whatever, it's a big bet on a small cap company.

[jamesiebabie] 12/3/2011 20:07

Rhu,

:0)

[rhubarbe] 11/3/2011 22:54

I'm now convinced that people don't read even the preceding post before posting.

[euclid5] 09/3/2011 22:39

There has been a lot going on at Rheochem lately, with them acquiring a number of licences in the UK's 26th licensing round, and the continued progress towards production of Athena, which will give them production of an initial 2,000 bopd by the year. But there were questions about whether they could finance their part of the large capital spend at Athena, as just recently in their interims they stated that they required a further US$14m, which was more than many were expecting. But they also stated they were conduction a review into their current business, with this review just being released. With the results being that they have decided to sell their mud oil service business, providing them with A$45m (about £28m, but only A$23.45m will be paid up front, the rest will be performance based), meaning there financing issues finally appear to be solved.
By selling their mud business though Rheochem are turning themselves into a completely different business, as rather than being an oil services company with a E&P business, they will become a full out E&P company. Because of this they have decided to change their name to Lochard Energy. But all these changes, and the many things going on led me to feel that a little bit more information was needed about what was going on, with me putting some questions to them, which their CEO, Haydn Gardner very kindly answered:

DGW: I note in your interims, you state you still require US$14m in regards to the capex spend on Athena. Could I just ask why so much is required, as from my calculations using the total capex figure given by Ithaca Energy ($220m), having a 10% stake would put the total requirement at $22m, therefore only $8m would be needed. So has the capex been increased? Or is the rest of the money needed for something else? If so could I ask what thanks? (I note you mention it funds could be used towards impending court costs)

HG: The original cost was around $210 million which assumed a rented subsea bundle of pipes and umbilical cables. A final decision was made to purchase this equipment rather than rent it. This pushed the capex up to $280m but reduced corresponding operating costs

DGW: I note also in your interims that you are conducting mapping on a number of your exploration fields, so can I ask when you expect this to be completed? Also what are you hoping to gain from this mapping process, possible drilling targets, or just more information to try to get some partners to invest?

HG: Some of the blocks contain previous discoveries . Mapping of these will help to understand why these wells did not flow as expected or were not tested. This process will involve the purchase of existing seismic and some new seismic. The previous discoveries are the highest priority. The plan is to see what the new information tells us and then decide which blocks to keep, farm out and drill.

DGW: Will the sale provide the money to meet all of your current plans on the exploration front?

HG: The money from the sale meets the current plans for the Athena development and acquisition of previously shot seismic to further evaluate the other blocks. It also provides working capital to run the company until we have revenues from Athena production.

DGW: What are you plans for the money, if you have more than you need at current?

HG: Excess funds will be held in reserve whist we evaluate the existing portfolio. The decision to shoot new seismic or drill will be made after the initial evaluation of the blocks.

DGW: Also, being an exploration company do you see yourself requiring more funds anytime soon, or is it too early to say?

HG: We should have sufficient funds to develop Athena and evaluate our other blocks. Athena production revenues in conjunction with the anticipated earn out should provide sufficient funds to shoot more seismic and/or drill an appraisal well should we choose to do so. Ideally we would prefer to farm out some of the exploration and appraisal blocks to reduce our cost exposure. More funds would only be required if we wished to escalate an aggressive drilling campaign involving several wells. This is not a current plan.

DGW: Can I ask when you require the US$14m by?

HG: We require $14m over the next 8 months with costs biased towards the end for major equipment items. The sale of the fluids business will cover the cost estimates for Athena

DGW: Finally can I ask, in regards to the court case which starts on October 2011, how long do you expect this court case to last, are you expecting a swift conclusion or is it more likely to be drawn out?

HG: We expect the court case to take about 8 days. If found in our favour we expect a quick resolution otherwise we could appeal which may drag it out longer. In that scenario, we would expect Athena revenues and the second tranche of proceeds from the sale of the fluids business to pay any settlement. We still maintain our position on resolving this issue in our favour.

END

Conclusion

To conclude, with the financing secure, and Athena still on track, just on Athena they seem good value on a market cap of £40m, and if any of their exploration assets come good then the upside could be enormous. Therefore they still warrant a place in the potential company changing news section of 'Grays Stocks to Watch' (you can view 'Grays Stocks to Watch' anytime via clicking the link at the top of the page).

[euclid5] 09/3/2011 22:34

Hi Bob

I am already in Logp - as you say the Barryroe & Helvic are proven fields - best to pay 25p now than 200p in the next few months - market does not wait to add the premium only when they produce cash but more from the potential of their future value

7 Kiwi - if they are / were trying to farm this asset down - makes you wonder why they have not completed this yet - have to try & find out more the NPV of Thunderball - is Metis an appriasal field or exploration field?