Harbour Energy Share Discussion Threads

[andypop1] 03/5/2020 23:59

Marky,
The RNS released on the 13th of March clearly stated the company needs $35 oil from that date for the rest of the year to be cash flow neutral, that figure takes into account the hedges on both oil and gas.
The company is due to release an update next Tuesday, they hope to have reduced the cash flow positive number down to $30 by then, as claimed by big Tone in his unregulated interview but that will be subject to contracts being defered or cancelled.
So yes the business is losing money hand over fist at $25 oil, as are all other producers.
Buffett has dumped his stakes in aviation, ironically I've just now selected my seats for our trip to the Carribean that will not happen.
Good luck all.

[rogerlin] 01/5/2020 08:57

Bearbull in Investors Chronicle for 24/30 April has some interesting comment on govt bonds "The Debt Management Office plans to raise £45bn in gilts sales in April alone, more than it has ever sold in a single month...The most recent offering, £2bn of Treasury 1 3/4 per cent 2049, was oversubscribed 2.4 times and sold at slightly over £128 for an average redemption yield of 0.7 per cent...A return of 0.7 per cent is not going to satisfy too many long-term commitments for pension funds and insurance companies, not even with inflation at its current depressed 1.7 per cent. At some stage these institutions will become both sated and wary...

[rose_by_another_name] 01/5/2020 08:42

I remember when you could get 15% interest
on council bonds, the problem then being
that inflation ate most of it. With the
government rescue spending, we might be
heading back there.

[sandcrab2] 01/5/2020 08:37

Thanks Steve

Bond looks tasty. Pity it doesn't run for 30 years. I'm sure you could get default insurance

[rose_by_another_name] 01/5/2020 08:13

I bought the bond the last time it was
going for 60 pence on the pound. Still
paying 6.5% on the face value, so I have
been getting better than 10% on my
actual investment. The rate is due to
rise to over 8% (on the face value) when
the extension goes through. Terrific
return, only worry is the possibility of
default.

[rogerlin] 01/5/2020 08:09

Thanks Steve it does now say 31.05.21

[steve73] 01/5/2020 08:01

sandcrab... IIRC the bond was issued back in 2012 or thereabouts, and was used to partly fund Catcher. I wasn't holding PMO from c. 2009 through 2016, so I'm not 100% sure... I did look it up during the refinancing but my memory it hazy..

If you really want to know go back through the old RNS's either on ADVFN or on PMO's website...

[jelenko] 01/5/2020 07:54

And when will the big short be closed, if ever?

[longwell] 01/5/2020 07:39

Bp will renegotiate as they need the deal to happen.If the price is reduced, deal sweetened then there is no need to go back through court as the principle of the deal remains the same but Pmo will have increased benefits which will strengthen the court decision already made.Appeal court will allow oil price to rise back up and benefit Pmo further.So win,win.

[sandcrab2] 01/5/2020 07:28

What actually was the cash from the bond used for?

[steve73] 01/5/2020 03:47

roger ...806.

No, the bond maturity was extended until 31 may 2021 at the last refinancing in 2016 (according to my notes, which might be out of date)

[heialex1] 01/5/2020 02:14

Perhaps more likely that they renegotiate price and/or terms of the deal. Doesn't make sense at the price that was agreed in pre-Covid world. I think / hope that there's a good chance of that

[berber1] 01/5/2020 01:43

In my opinion, PMO should delay as long as possible, until the share price recovers to
the 100p level. otherwise the dilution will be excessive. Is that possible though?

[rogerlin] 30/4/2020 17:43

If it doesn't go ahead will the retail bond mature as originally envisaged on 11.12.20? If that happened it would be a nice profit from here.

[sandcrab2] 30/4/2020 17:25

If there is a revised scheme the whole court process will have to be repeated

[rose_by_another_name] 30/4/2020 16:55

Not sure we want to go through with "the schemes"
any more, not as originally envisioned.

[sandcrab2] 30/4/2020 15:31

'the schemes cannot become effective without a minimum equity raise of $350 million. '

Is this true?

PMO capitalised atm at £266m

Looks like wipe out time

[y1phr1] 30/4/2020 14:22

Time to buy

[gregpeck7] 30/4/2020 14:06

Time to move to Jkx. Not ridden the oil price rally and finally getting going today. Unlike here, no debt, p2 reserves over 100m and 10,000 boepd production. Probably the biggest bargain out there at 30m mkt cap..

[daniel levi bmd] 30/4/2020 08:30

Fyi

‪Arden Partners Coverage: Buy Union Jack Oil: Upside 450%.....

Dan
X

[markymar] 30/4/2020 08:25

The firm said in a statement: "Premier has hedged 30% of its full year 2020 oil and gas entitlement production at an average oil equivalent price of $60/bbl. "This includes 40% of the group's oil production for the first half of the year hedged at $64/bbl.So your wrong Andy they are not losing money hand over fistStan you getting my gist now!

[steve73] 30/4/2020 07:34

Also, the closing June Brent contract is showing none of the shenanigans that befell WTI a couple of weeks ago.

It's actually rising nicely (although July is dropping to close the contango), clearly indicating (to me at least) that there no worldwide shortage of storage capacity - at least not yet.

[steve73] 30/4/2020 07:28

RKH RNS re. Sealion, detailing some amended terms for PMO...

[andypop1] 29/4/2020 23:50

On the plus side the US SPR has taken in 1.2m barrels of oil and US production is down another 100k per day, 900k less than peak production.
Good luck all.