Partial cross post
a post I've made this morning on TRAP includes some useful clarification on this question. It seems worthwhile to cross post it here to make it more prominent and bring the general point to the attention of people who have no specific interest in Trap
"...It must be one of very few players to have welcomed the increase in tax on North Sea production introduced in the budget. The plan is to fund its drilling programme by clawing back tax from its production division. It will now need to produce only 2,000 barrels-a-day to get the necessary tax relief to pay for eight wells, compared with 3,000 barrels-a-day at flotation. Further, the tax increase has reduced the price of producing assets by about a quarter....."
source: FT article
