Hurricane Energy Share Discussion Threads

[lfdkmp] 21/9/2017 22:11

Having interested parties involved in additional fundraising was a great backstop as fo discussions were not compatible with Lancaster EPS timing requirements; however, interested parties' interest at 32p did not sit comfortably with an "inflated" share price in excess of 60p.

In fact it could even be reasoned that the problem that the HUR BOD had was that expectation of success was too high.

"Stifel need your help"

"Have you heard of warrants, Mr Stobie?"

[greyingsurfer] 21/9/2017 20:51

What that tells us, DB, is that HUR was overpriced before the placing. Don't blame the bod for the price you paid.In the absence of an FO raising cash was always going to be either high interest loans, or far better equity based. They managed to pull off the better option. The alternative would have been not to move the project forward, which would have been far worse for shareholders long term.Peter

[davidblack] 21/9/2017 19:53

Yes Fireplace they sold it at a 50% discount, a real accomplishment?

The only trouble is having sold it at half price they didn't have the muscle to maintain the 32p placing.

Those new bargain holders have lost 12.5%, so Steifel will be much loved.

[spooky] 21/9/2017 15:53

Anyone know the ticker for the HUR convertible?

[fireplace22] 21/9/2017 15:49

hd, good piece on lse re Stifel from casapinos:

ADUK it's a bit like your tailor, I shop at Primark, you may be a customer at M and S, some here will buy their clobber at Moss Bros but its Savile Row that makes a man stand out(as a prat ,but a wealthy prat!)
Your broker will have connections with wealth,with "movers and shakers" with Governments, with people who can make things happen , pull deals together, with access to funds,.......that's what they do, the bigger they are the better connected they are, the more they can achieve on your behalf. I don't know, but it's a reasonable assumption that Stifel were the guys who found the guys to lend >$300 mill to HUR on what are quite reasonable terms , even though they are expecting to turn a tidy profit. With all due respect to Cenkos a glance at their website will show that their last four deals ranged from £3 mill to £ 30 mill. Finding partners to fund a £500 mill deal was probably way beyond them.

[hiddendepths] 21/9/2017 15:43

I think the issue isn't Robert Trice; it's the unholy alliance of a Finance Director who doesn't give a fig about the share price and Stifel, who also don't care about existing shareholders, just on getting the money. Trice is naive and rather ignorant on these matters and as far as I can see has just told the money men to get the funds needed for firstly wells and then the Early Production System.

Trice has to shoulder some blame but like DB I don't really think he's a CEO. Stobie is a nasty piece of work and will do nothing to help shareholders unless and until he's got a high level of personal interest in the share price - ie loads of shares and options.

In my day, I helped many oil companies raise money and never did I or the brokers I worked for indulge in such a cynical approach as Stifel.

But HUR has all the appearance of being the real deal and I remain confident we'll do just fine in due course - not as well as we should have done but there's still plenty of upside for sure.

[fireplace22] 21/9/2017 15:36

We have absolutely no insight how difficult it was to raise cash at the varying times, the cash had to be found. Unfortunately on occasion it was raised at a price well removed from the prevailing share price. What was a fair reflection of the value of the company at that time, the share price or what a lender was willing to lend at? The only realistic one in the given environment was probably the latter. I don't know if a rights or open offer was practical in the circumstances. I have read elsewhere, probably rumour, that the boards confidence of an early FO was based on a tie up with Petrofac but this fell through due to their misfortunes and they had to go for a rushed share placing instead, at not attractive terms.

[greyingsurfer] 21/9/2017 15:28

I think he does DB! And that's as it should be, and results for those prepared to wait look promising.Peter

[davidblack] 21/9/2017 15:10

Peter I think I have made a fair case that the management have been fairly consistently value destructive corporately but partially offset by Dr Trice's success with the drill, but overall a consistent net loser in equity terms.

I just think Dr Trice should focus on what he does well. I don't see that as being too controversial?

[fireplace22] 21/9/2017 14:39

They have had to raise money for a small company with a high risk strategy in a pioneering field of exploration. It was never going to come cheap. The low strike price of the final placement was in the main because of the astronomical amount of cash required (relative).

[davidblack] 21/9/2017 14:27

Ok I think he he is a successful and accomplished geologist, no argument.

But the point I was making was that he has been consistently value destructive whether that is at 43p, 34p, 51p or 32p. T

Oh and the distressed placing at 15p was only achieved by giving away a truck load of warrants to Ketegen and CA.


There seems to be a consistent disregard for shareholders in these placings in favour of new investors.

My solution to this would be to hire an experienced Oil CEO, does that sound unreasonable? Dr Trice could then focus on exploration.

[fireplace22] 21/9/2017 13:45

The primary job of the management is to manage, as no FI on acceptable conditions was forthcoming they had no choice but to place and that was always going to be on terms set by the placees. Its the managements job now to bring the EPS to fruition, do further exploration as cash allows and farm out on acceptable terms this time while in possession of a good cash buffer. The rest will follow including an appreciation in share price There is little the management can do to affect the share price other than meet their own targets. Caring doesn't enter into it.

[hopeful holder] 21/9/2017 13:43

The start up money was to get us going.The follow up money was to prove if we had an asset in our fields.The last raise to evidence how good / bad the our assets is.Potentially another raise in the future needed if we go to FFD. I got caught out with the huge drops but the picture was there for me to see if we wanted to keep the asset 100 percent then we had no choice to raise cash to survive and progress.Whilst i feel bad i did not sell out in the 60's, (greed?) I am still of the opinion i will still be in profit by first oil.

[kaos3] 21/9/2017 13:34

Not only had he guts but early investors had guts too to invest on gut feeling instead of the data interpretation done by him (facts). was it only guts intuition etc. ? lol. like geologist praising financial success. which is possible probable and true. and right to do so.

but anyway here we are. ending well - all good.

[shabbadabbadoo2] 21/9/2017 13:33

Davidblack - what it does show is that the good doctor is not that bothered about the share price. What matters to him is getting the money to drill. This can be looked on as good, or bad. Bad, because it suggests he doesn't care about the shareholders and if it came to shafting us to save his baby, then we are history. Good, because he believes that a bit of short term pain will be forgotten when the true value is outed.

[kaos3] 21/9/2017 12:46

I am perplexed. First most were praising dr Ts special knowlege and expertise on FB. Now it is an old song that all knew long ago. And majors knew it etc but they just did not feel like it - poking into a huge reservoir.

[davidblack] 21/9/2017 12:17

I like the fact Dr Trice thanked us for our support as shareholders re the placing. I suppose that's what you have to do when you halve the value of people's shareholdings?

Given that the company reduced smaller existing shareholders equity by 50% and the new placees by 12.5% then the whole thing was a huge success?

I just hope Dr Trice stays away from other corporate finance successes because I don't think destroying value normally is referred to as "Success." Perhaps he should just stick to drilling holes, something he seems to know about.

And for those who would see this as unfairly critical. If you invested on float in early 2014 at 43p you have lost 35%. If you want more there is the 34p or the 51p placing, both in the red. Only the distressed placing where Keragen and CA actually bought in and saved the company delivered a profit! And CA were rewarded by being shafted on the 51p placing!

So to date the corporate performance of Dr Trice looks less than a great success or is that a tad unfair?

[steptoes yard] 21/9/2017 11:51

Malcys back in town..lovely stuff

[kaos3] 21/9/2017 11:24

imho it is about how to gather data and how one should interpret them. and how to optimize the exploration - not to over do it (water) but not being too slow with it.

Then comes the field definition - connectivity

lots of on situ practicaly developed knowledge that can and should be protected. specially as it was tried several time in the process.

etc.