Hurricane Energy Share Discussion Threads

[robbiekeane] 13/4/2018 10:27

It's a struggle again today, Syria weighing on the markets ahead of weekend perhaps

[tom111] 13/4/2018 10:07

Sorry im new here can someone tell me when the next important news is due,thanks

[laserdisc] 13/4/2018 09:17

proactive "Another broker puts Hurricane Energy ‘upside’ in the spotlight" the last para of the article is interesting lots going on technically for when AM arrives

[enfranglais] 13/4/2018 09:16

After a post like that, wiseacre is now to be know as wisefoot (in the mouth perchance)?

[hondo7] 13/4/2018 00:01

Peter: Isn't it $1.50 rather than 1.50 pounds. That would be be about i.o5 pounds.

Hondo. 1.05 Pounds

[leoneobull] 12/4/2018 21:19

I would not want to be out if this over the weekend

[super95] 12/4/2018 17:57

wiseacre
Your arithmetic is incorrect by a factor of ten.
Is the order for 10M shares which would cost £3.6M or 1M shares which would cost £360,000 as you mentioned in your post?

[laserdisc] 12/4/2018 13:55

Shipwatchers kingfisher updated this on Monday 9th, hope to start some tracking soon

Anticipated Dates
Transocean Paul B Loyd Jr (PBLJ)
14-04-2018
14-06-2018
Lancaster 205/21a-6
60°12.000'N 03°51.757'W
WGS84

[greyingsurfer] 12/4/2018 11:48

Thanks Steve and ET, I the night your interpretation is correct!Peter

[extrader] 12/4/2018 10:56

Hi Peter

I think conversion is at 150% of strike price mid 30's from memory ie in the mid 50's (pence). First attempt at posting from mobile...;-(
HUR is incentivised to force conversion as soon as cash flow permits, CB holders are motivated to do so as soon as outlook warrants.
All AIUI. Dyor rec
ATB

[steve73] 12/4/2018 10:54

Thanks Peter, but I understand this to mean if the share price is 150% of the conversion price (which was 25% above the equity issue price of 32p, in $ at the time of issue, or $0.52).

So if my understanding is correct, they can force if the share price is over $0.78 (or 55p at todays $1.42).

for info, cf. the recent PMO & TLW bond, forced conversion could be at 140% of the CP, and PMO offered enhanced terms to convert 6 months early...

[wiseacre] 12/4/2018 10:46

Thanks for putting me right Extrader. I understand nearly all the trade has been retail.
Serious institutional buying will come with the full stock exchange listing. I understand however one hedge fund has an order for ten million shares at 36p (worth £360,000) which secures a support for the share price under which it is unlikely to drop again.

[chopsy] 12/4/2018 10:14

Well I think there is a very high chance of that. Or a sale before then.

[robbiekeane] 12/4/2018 10:04

Thanks for the clarification all

[greyingsurfer] 12/4/2018 09:20

From the shareholder circular - available for all to read on the website:

The Company will have the option to redeem all, but not some only, of the outstanding Convertible Bonds:

• at any time on or after 14 August 2020 at par plus accrued interest if the value (calculated over a
specified period) of the Ordinary Shares underlying each Convertible Bond of denomination
US$200,000 shall have been at least US$300,000; and

• at any time, if 85 per cent. or more of the aggregate principal amount of the Convertible Bonds
originally issued shall have been previously converted, redeemed or purchased and cancelled.

The Convertible Bonds will benefit from the payment of a make-whole amount (being the amount of all
interest that would otherwise have been received under the relevant Convertible Bonds up to and including
24 July 2019) to any holder whose Convertible Bonds are converted from such date up to and including
24 July 2019.

Which means that they can only convert early, from Aug 2020 on, if the shares are above £1.50 (unless my maths are out)

Peter

[ltinvestor] 12/4/2018 08:52

I believe that Hurricane have the right to redeem all the outstanding bonds at par plus accrued interest on 14 th August 2020

[steve73] 12/4/2018 01:47

Does anyone know if the CB's can be forced to convert - and at what share price .?

If the CB holders keep to maturity they'll make (I think) 6 years at 7.5%...or 45%. This represents a share price of c. 53p at current Fx.

By forcing the holders to convert early we save a chunk of interest payment.. IIRC there's 2 years worth (15%) held in escrow that could be freed up and would allow us to drill another Lancaster well (or perhaps re-evaluate the Warwick well, prove the oil, and convert it's prospective resources to more contingent).

[telbap] 11/4/2018 23:04

Thanks for the insightful and in depth answers!Has Dr t cracked it?We have to wait to see..

[robbiekeane] 11/4/2018 22:16

The convertible issue was discussed at length last night on LSE. HUR thread.

"The Bonds will be issued at par and carry a coupon of 7.50 per cent. per annum payable quarterly in arrear in equal instalments. The Bonds will be convertible into fully paid ordinary shares of the Company (the "Ordinary Shares") with the initial conversion price set at US$0.5200, representing a 25 per cent. premium above the placing price of the Concurrent Equity Placement, being GBP0.32 (converted into U.S. dollars at a GBP/USD 1.30 rate)."

So bondholders may consider converting now (now at a rate of £/$ 1.42 = 36.6p) as they are in profit and might benefit more from a share price hike but then they miss out on a guaranteed coupon of 7.5%. So potentially a barrier to much bigger rise.

Maybe take some profits in case some nutter starts WW3 over the weekend, but on the plus side the price of oil will go up. You pays your money you take your choice...

[zztop] 11/4/2018 21:13

Thats cost per barrel

[zztop] 11/4/2018 21:12

F1I dont know about 25 % dilution Sounds if a take over comes the cost per share sounds good

[chopsy] 11/4/2018 20:51

So why is it not £3 per share now? It is because 2C is not 2P, we are betting that it will be in due course. After 6-12 months of EPS we will see what the CPR has to say on that score.

[chopsy] 11/4/2018 20:49

Why would the majors want HUR at that price? Full field development will be paid for by cost oil, then they will get the net back per barrel going forwards, they could get $30 per barrel. i.e. six times what they will have paid for the assets, disregarding the further development/appraisal upside.