Stratic Energy Share Discussion Threads

[steelwatch] 22/4/2009 15:46

Details of Field Allowance [Budget Notes Pp 31-32, at

Companies that produce oil and gas from the UK and UKCS from new
fields are subject to ring fence corporation tax (30 per cent) and
supplementary charge (20 per cent).


6. A new 'Field Allowance' is to be introduced which will provide certain
categories of new field with a fixed allowance which can, over time be
offset against the supplementary charge payable by the companies
involved in the field. Once that allowance is exhausted the field will, in
effect, pay the full North Sea rate of tax. The speed of exhaustion will
depend on the profitability of the company – i.e. if oil prices rise then, all
other things remaining equal, the allowance will be exhausted more
quickly.

7. The field allowance applies to small fields, ultra heavy oil fields and ultra high temperature/high pressure fields:

• the field allowance for small fields is £75 million for fields with oil
reserves (or gas equivalent) of 2.75 million tonnes or less, reducing on
a straight line basis to nil for fields over 3.5 million tonnes. In any one
year the maximum field allowance (for a field with total allowance of
£75 million) is £15 million;


• the field allowance for ultra heavy oil fields is £800 million for fields with an American Petroleum Institute gravity below 18 degrees and a
viscosity of more than 50 centipoise at reservoir temperature and
pressure. In any one year the maximum field allowance is £160 million;


and


• the field allowance for ultra high temperature/pressure fields is
£800 million for fields with a temperature of more than 176.67 degrees
Celsius and pressure of more than 1034 bar in the reservoir formation.
In any one year the maximum field allowance is £160 million.

Whether or nor Cairngorm meets the criterea, or, come to that, any of the other fields, remains to be seen.

[steelwatch] 22/4/2009 14:55

rathkum - as I understand it, Cairngorm is high temperature/pressure so should benefit if/when producing. Let's see how the story unfurls once the analysts have digested this measure.

[rathkum] 22/4/2009 14:47

Steelwatch

On your reckoning, would Stratic enjoy any benefits from the budget announcement with regards to revisiting Cairngorm. Thanks

[steelwatch] 22/4/2009 14:00

From today's Budget:

Following the consultation launched at the 2008 Pre-Budget Report, the Government announces a package of measures to encourage the economic recovery of the UK's oil and gas reserves. This package will include the introduction of incentives to encourage investment in small and technically challenging fields, which could assist in unlocking around 2 billion barrels of the UK's remaining oil and gas reserves.

The package also includes measures to assist asset trades and give companies the certainty and stability they need to underpin investment.

From the Budget notes on the Treasury Site:

Interesting for Cairngorm!
The field allowance applies to small fields, ultra heavy oil fields and ultra
high temperature/high pressure fields:
• the field allowance for small fields is £75 million for fields with oil
reserves (or gas equivalent) of 2.75 million tonnes or less, reducing on
a straight line basis to nil for fields over 3.5 million tonnes. In any one
year the maximum field allowance (for a field with total allowance of
£75 million) is £15 million;
• the field allowance for ultra heavy oil fields is £800 million for fields with
an American Petroleum Institute gravity below 18 degrees and a
viscosity of more than 50 centipoise at reservoir temperature and
pressure. In any one year the maximum field allowance is £160 million

[westmoreland lad] 22/4/2009 01:38

We'll get there m8 -- diny heed. A wee while longer and look back and laugh

Tomorrow --

Regs

[steelwatch] 22/4/2009 01:30

westie - lumped into AFR for me old age. COP on de up. Pfolio on de mend. A big heave-ho from de Ruskie end to pull us out of de mire would not come amiss!

[devil20] 21/4/2009 21:52

westmoreland. I've seen you post on some BB. I can't get into any of the BBs I post on. Any ideas!

[westmoreland lad] 21/4/2009 21:30

Steel -- about to be some notice taken about our forgotten gem here !

[doc robinson] 21/4/2009 21:12

up 10% in canada oil news ????

[chicken charlie] 21/4/2009 19:33

STEELWATCH
If there is news this month how much do you think the share ppice may move.

[steelwatch] 21/4/2009 13:52

Most recent estimate was from Valiant Petroleum who said this month.

07/04/2009 - At the time of writing, the Group and its partners are anticipating first oil
being achieved from the West Don field during April

[jotoha2] 21/4/2009 13:45

Anyone know when Don fields are due to gush??

[doc robinson] 12/4/2009 14:34

news of first oil cannot be long now watch price for indications next week

[steelwatch] 07/4/2009 08:34

At the time of writing, the Group and its partners are anticipating first oil being achieved from the West Don field during April with first oil from the Don Southwest field also expected during the first half of 2009. This will be an important milestone as the Don Fields represent the culmination of a number of years of hard work for the Company. The cash flow generated from production during 2009 will bring further financial flexibility and help differentiate the Group from some of its AIM-listed peers.

We look forward to reaching full project completion during 2009 and would like to take this opportunity to thank our employees, partners and contractors who have been crucial to the ultimate success of this project. The project remains broadly on-budget with some cost escalation in-line with project contingency levels mostly due to severe weather delays experienced during the offshore drilling and commissioning phase.

==========================================
During 2008, progress was made on the Crawford field development with considerable work going into detailed reservoir modelling and simulation work to understand the optimal development scheme for the multiple oil-bearing horizons in the field. The front end engineering and design phase is continuing and the current plan includes hydraulically fractured wells in order to maximise production and reserves' recovery from the field. The Field Development Plan is on course and is anticipated to be submitted by the operator during 2009. The Company and its partners will continue to use 2009 as a time of detailed project planning and optimisation in order to maximise the value of the project.

[steelwatch] 27/3/2009 23:52

Rerating in progress on W DON 1st oil to derisk the finances. Announcement any day now.

[chicken charlie] 27/3/2009 18:41

Up again in Vancouver to 28 cents

[steelwatch] 27/3/2009 15:09

westie - apparently sent, but nothing arrived. Keep you posted. If you want the gist, go to the Canadian bulletin board link at the bottom of the header.

[westmoreland lad] 27/3/2009 15:04

Steel -- would you p/ls mail me a copy when to hand -- tia

Just checked mi average -- 10.75p. Chuffing eck I'z in profit

[steelwatch] 27/3/2009 14:58

westie - a new brkr's note out which trying to get hold of t'other side of the pond.

[westmoreland lad] 27/3/2009 14:54

Cheers Steel -- lol

And the reason for the rise is ?

[steelwatch] 27/3/2009 13:52

Someone paid 15p