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SEPAC Complaining About Budget 2007
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So who is a bit slow and complainy about the federal government's latest budget? The Small Explorers and Producers Association of Canada (SEPAC) wanted updated limits on access to flow through share financing for junior oil and gas producers in the latest federal budget but didn't get it. Under current outdated limits, only very small producers under a $15 million capital limit can renounce Canadian Development Expense as Canadian Exploration Expense and then only to a limit of $1 million per year. With rapid cost inflation in recent years this outdated limit often is reached on a single well.
The federal government will also phase out accelerated capital cost allowance by 2015 for oilsands producers. The loss of this accelerated capital cost allowance may be enough to
cause some oilsands project proponents to reassess their investment plans....What do these players need? 150 dollar barrels of oil? Innovate and find cost effective ways to lift oil so it won't be so expensive.
The junior oil and gas sector is grappling with lower than expected natural gas prices, high operating costs as well as uncertainty on climate change policy and provincial royalty rates. The federal government missed an opportunity to improve the business climate for emerging and junior oil and
gas producers in Canada.
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Barry
Mr. Do It All
Apr 1, 2007, 7:19 PM
Post #1 of 1
(607 views)
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