Urals Energy Share Discussion Threads

[le mass du pap] 19/5/2009 11:22

Agree ABRABA

[jcgswims] 19/5/2009 11:22

Same pattern as yesterday - dropping the price to drum up buyers?

[spp119] 19/5/2009 11:19

Tax credits, actually tax holiday from the main Unified Production Tax, (circa 21% of gross revenue) was the only tax credit operative on the D&T fields last year. And it remains in place until 2016.

What is new is the 10 year (not 3 year) break being offered to East Siberian fields (under exploration, early development)from the Export Tax (fluctuates according to export price, but averaging about 35% of gross export revenue). This tax relief proposal would now apply to D&T oil revenues (which are to be almost 100% export oriented via ESPO). It was not in existence before.

To break the boredom of the day, and to understand the thinking (pro and con) behind the current Russian tax relief policy proposals, here is an interesting article from today's WSJ.

"Russia Sees Gloom Despite Rise in Oil"

[abrada] 19/5/2009 11:18

MMs must love you lot talking about dilution at this price just can not see it

[jcgswims] 19/5/2009 11:18

Oh yes that's right - thanks seabass :)

Buy limit now 300k at 8p

[darren81] 19/5/2009 11:15

what is the point of having a share issue at this price? the current market cap is a mere 15 million, i really cant see a dilution of the shares to return a figure that would be lower than 15m....maybe if the share price was worth £2 or more it would be a feasible option but not at this level, it just seems ridiculous

[seabass] 19/5/2009 11:14

jcg - Did'nt SB have a security on all BOD's shares but it was agreed I think that this would be waived in the event of transfer of D&T.

[carlito sway] 19/5/2009 11:04

thanks for posting 75djp - I will update my spreadsheet to include your holding.

[djmoggy] 19/5/2009 11:04

Thanks Jc - so plenty of stock still about!

[seabass] 19/5/2009 11:03

jcg - me thinks someone has got a whiff of share a offer and is selling to raise money in advance.

[seabass] 19/5/2009 11:01

good news regarding dilution, there are only 250M shares available with approx 180M allotted. This means less than 1 for 2 held, or approxx 30%. An egm would be needed to create more shares so as a group (15%)we could have our say.

[jcgswims] 19/5/2009 10:59

Well you can buy a whopping 300k at 8.65 and sell only 10k at 8.5 - now 3 v 1 :)

[carlito sway] 19/5/2009 10:59

L&S - Seychelles is definitely one I would consider and I will look into closer to the time I need to book - thanks for the recommendation.

[ucasavi] 19/5/2009 10:57

As I understand the tax credit is for 3 years. Not sure D&T will be producing much during this time of development to fully take advantage of the tax credit. A more important thing could be the change of the tax, associating it to the net profit instead of the full oil price

[seabass] 19/5/2009 10:56

Jonny - unforunately us/we s/holders will be the last to be considered. Will have to check amount of shares UEN hold yet to issue, this will cap dilution without egm.

[jonnyfro] 19/5/2009 10:53

Good post Seabass and well explained, again my only concern is share price dilution and would like to hope that UEN wouldnt raise additional funds whilst we are at this very supressed share price...

[djmoggy] 19/5/2009 10:52

jc can we have an update on the limits?

In the absence of any big sells and a stable shareprice I think (IMHO) that the seller may be thereabouts exhausted and it could be a very good time to top up whilst the last remaining bits of the overhang are still there to be snapped up.

Just trying to free up some funds myself to take advantage.

Mogs
:)

[seabass] 19/5/2009 10:51

The tax credits talked about had been unofficially in place during negotiations (re $140m extra developement loan) with SB last year. Maybe SB would not commit until tax credits signed, thus their reduced repayment risk on their $650-$800m loans would be official. These tax credits amount to about 45% extra gross income, together with POO now approx 70% higher, lower LIBOR rates and approx one year nearer to connection to ESPO, any repayment calcs could be dramatically different towards UEN's favour. This also coincides with the beginning of summer when developement and production is easier to ramp up and shipping starts on ALL producing assets. So there seems to be compelling reasons at this point to renegotiate given the importance of UEN's input to the future Russian/Chinese oil agreements. I beleive UEN had always been given the stay of execution by debt default. As to extra funds it still concerns me that a massive share dilution could take place if compiled at these price levels. Most funds etc hold at much higher sp, poss £2+ as placings at £2.40, £3.60 and £1.90 were held with approx 95M additional shares. It would therefore suit them to average down significantly to give themselves a chance of reducing their losses and retaining their % of UEN in the med term. For all the BB holders (15%) who hold at very low levels we would only average up and have to find big monies not available to us, to fully take part. For us hopefully as suggested monies are raised via share holders after share price has risen sharpley after some positive news.

[lift and shift] 19/5/2009 10:50

I had mine in the Seychelles - you really can`t beat the Indian Ocean, if you can put up with the giant man eating spiders & fruit bats that is... nowt wrong with Margate though, everyone has to live somewhere...

[landwatcher] 19/5/2009 10:48

Rockin, the phone No. you got should worth some money then;)