Post by
Proselenes on May 29, 2022 4:13am
UK Windfall tax - a big positive for i3 Energy
The new UK "Windfall Tax" is actually a boost for i3 Energy imo.
If the Serenity appraisal comes in good, the it makes "buying" the Serenity area as a viable option to reduce tax paid by companies who have North Sea production and looking to reinvest in the North Sea.......to reduce that tax.
It may make "farming into" or even "buying out totally" the Serenity prospect very interesting for some players.
Even now, it might be attractive for some players in the North Sea to now farm into the Serenity appraisal well before drilling, therefore giving i3E a "free carry" on the drilling costs.
Basically anything spent by current North Sea tax paying companies on Serenity now, or future is all then due for tax rebate. So they can use the new Windfall Tax money to buy up more assets in the North Sea............only way to avoid it is invest in the North Sea.
i3 Energy are in a very good place at the moment with zero current North Sea production but with a lot of potential in Serenity.......
Comment by
Augataag on May 29, 2022 10:21am
Agreed. Plus the beauty of all their Canadian producing assets are exempt from the windfall tax. The best of both worlds. Loading up at these prices.
Comment by
Augataag on May 29, 2022 10:23am
And $273 million CAD in tax pools for good measure :)