I sold some of my non-registered stock this week, taking the loss and claiming back some capital gains from last year.
After 30 days, I can buy back with no tax implications.
Hopefully we are not going to get the DECC approval until after christmas, a roll of the dice, but that at least makes watching this stock worthwhile.
For those who are confused about what the change in plans means, I think that taking the phase 1 plan and making a phase 1a and 1b is based on getting the financial requirement for DECC approval in order for the Rig to be utilised in moving the field forward.
If they needed to get financing to fund a full phase 1 plan, there would be some serious dilution at today's prices. Right now the SEDA will provide some fexibility and hopefully a SP rise when they get approval will allow the board to dilute less as they will only need to draw down when needed instead of financing all in one shot.
Not sure how this affects the expected production but the serious drilling would not have occured until a phase 2 anyway.
The timeline might be stretched out more than I would like, but my inverstment horizon is one that is long term, so I can wait.
The bottom line is that the value of the field did not change and will only increase in value because of the projected rise in crude prices. If IRAN is next on the hit list as some hedge funds are expecting (hedges for $170 oil are being taken) then this could be good timing for getting into production. Especially for oil coming from the North Seas (risk reduced).
For those of you who have been reading that board of fools in the UK at iii, don't get caught up in garbage they are spewing, I really feel bad for the honest investor over there who is getting hammered by people with an agenda.
Andy
