Hurricane Energy Share Discussion Threads

[btvitexcoinvxcryptowhale] 03/3/2021 10:54

That's me got 3million Hurricane Energy shares now.CPR upgrade No dilution Thanks slift for bashing it down for me to get more BT

[thegreatgeraldo] 03/3/2021 10:16

Totally reliant on the performance of well 6 for the next 18 months or so, until a sidetracked well 7z can be brought to the party. Meanwhile, in a few months time HUR need to commit, or otherwise, to extending the FPSO lease, or maybe renegotiate the second 3 years' terms?

[ngms27] 03/3/2021 07:51

Actually the latest update and OGA data showed that well 6 was no longer viable on natural flow and water cut had likely increased above 40%

The ESP has worked by sucking oil in a more balanced way along the horizontal so less water for now.

However removing oil/water lowers reservoir pressure meaning you have to suck harder to produce the same volume all the time raising the OWC.

If the reservoir pressure drops below bubble point in H2 then any gas in the well bore around the ESP will materially affect production.

This all means it’s just a stay of execution. Like shareprophets said yesterday they’ve given notice to retail investors that the end is nigh. hxxps://www.shareprophets.com/views/54368/hurricane-energy-investment-case-isnt-getting-any-better-as-expected-share-price-is-bonkers

[leoneobull] 03/3/2021 05:46

porroh, good post. We know the WC will incrementally increase, and that production will decline over time from 1 we'll. BUT with poo expected to be at 65 to 70 in spring to summer period and beyond, each month cash will increase quite a bit. Spirit may get sold, new CPR will be out, and after we pay off CBs, we still have acreage, infrastructure and tax losses.....with zero debt. As Shell has made drilling W o Shetland a priority, if we can identify some drilling targets...,who knows....

[leoneobull] 03/3/2021 05:15

Pro, simple answer is they have stated they won't be giving ad hoc production updates , but quarterly...we only just had one mid Jan that gave not only quarterly figures, but a comparison over three quarters. This seemed to show reservoir management has kept production reasonably high (compared with doomsday projections on here). Highly disappointing no drilling in 2021, but maybe with higher poo we can pay off CBs in full by end 2021 as Ggghhh pointed out

[porrohmahnn] 03/3/2021 04:24

I can't say I'm surprised by the relatively small drop in price on Tuesday. All the bad news was already priced in. If anything, the RNS could be good news for shareholders because, if production can continue at a reasonable rate, there is less chance of a dilutive financing arrangement wiping out current shareholders. If production runs into terminal problems, we're screwed anyway but we already knew that and there's nothing to suggest that this risk has either increased or decreased.

If I were a prospective financer, I'd want to see an update CPR before I put any money into HUR.L. Given the shortage of rigs and their lead-time, today's announcement makes perfect sense because, by the time the CPR is published and any finance negotiations could have taken place, it would have been too late to drill this year.

If there's a favourable CPR at the end of Q1, funding shouldn't be an issue but there's no longer any pressure to conclude funding rapidly which is arguably a good thing. Existing shareholders will just need to hope that production holds up. That's exactly the same position we were in before the CPR but there's now less chance of shareholders being diluted.

From my perspective, on balance, there's more good news than bad news in the RNS.

[pro_s2009] 03/3/2021 04:01

The big glaring issue is with that RNS.........


Why no production figures ? Why no water cut data ?


I mean, if you have stabilised water cut and stabilised the production level you should be trumpeting that........... woo hoo..........let everyone know. Good news all, look at this..........

If you are not giving out the data it tends to suggest that its not good, people might panic sell and the share price might go down ???


Sometimes its what is not said as opposed to what is.

[mhin2] 02/3/2021 21:57

Comedy, I think the issue is more fundamental. Remedial action needed to occur this year to avoid/circumvent their already anticipated problems next year. The BOD have conceded to failure at a critical and important point...that does not really inspire confidence. Hur wold be better with Trice at helm....

just recall todays RNS...

"...Discussions on the Company's forward work programme, strategy, financing and balance sheet recapitalisation are ongoing.....On 18 December 2020, Hurricane outlined contemplated next steps in the Lancaster development programme, which included a second production well in 2021 by side-tracking from the existing 205/21a-7z well into the central area of the field.


This proposed side-track is more complex in nature than previous wells ....As a result, the Company has concluded that it will not be possible to drill this well during the 2021 summer weather window without unacceptable operational and cost risk."


can they afford to bounce drilling because they got it wrong?....Time for the directors to buy, and show faith in their own competence to manage what they sit upon (despite the now discovered failure of their prior plan) or time for them to go....Geez a Job!

[comedy] 02/3/2021 20:37

Nothing in today’s rns indicating anything
Happening soon, so question point of
Rns?

Stop share price moving up as it was gearing to get past 4p heading to 5p?

Why stop sp? If the bod are happy to
Pocket wages and move the pencil around
And draw bananas all day?

Mmmmm oh yes but we’ve got a new corporate
Broker and we need to raise cash???
Oh shxt the oil price keeps rising and
We keep generating more cash, so why do
We need to raise cash???
Shxt , forget that pull the share price back down
So we can rejig the shares in to suitable
Pockets???
Call me cynical today was to try to hold back share price rise. Problem is we have had
Another day of earning more cash so what
Will be the next supposed problem?

[leoneobull] 02/3/2021 19:44

Think nothing of it Kooba, I made the same mistake. Mind you, NGMS got the CB repayment date wrong by one year, so easy to forgive such a youthful indiscretion

[leoneobull] 02/3/2021 19:43

Could the USD weakness be highly beneficial to HUR when laying off the CBs? Higher POO, paid in usd but also debt in USD. Weak dollar - higher Brent ...and commodities generally.I'm genuinely surprised share price reaction wasn't more dramatic . Large amounts of cash flowing in and possible interest in their acreage in future ..

[kooba] 02/3/2021 17:47

Apologies you are correct..mistaking stable for natural !Testing of the Lincoln Crestal well recorded a maximum stable flowrate of 9,800 stock tank barrels of oil per day ("stb/d") with the use of electrical submersible pumps ("ESPs"). The well flowed at an average rate of 4,682 stb/d under natural conditions. No formation water was produced.

[evilblues] 02/3/2021 17:44

Any word on charlatan Trice?

[fat frank] 02/3/2021 17:39

TGG; I think that is what they mean with the statement 'This proposed side-track is more complex in nature than previous wells on Lancaster due to the incorporation of an intelligent completion and the challenges of delivering the well trajectory from the side-track location.'

They obviously have data but is it enough to guarantee the correct positioning of the completion? And can they get there with sidetrack?

I believe past history shows some shortcomings in this department....

[thegreatgeraldo] 02/3/2021 17:32

Fat Frank - Interesting link to the intelligent completion - thanks!

The whole point of going upstairs to the attic - top of FB, bottom of overlapping sandstone? - was to get well away from water though. & it would seem that to design an intelligent completion, you'd need to understand what you're drilling into.... or drill the well, suspend & then put the intelligent completion together?

[ngms27] 02/3/2021 17:23

kooba, Lincoln Crestal had 5k natural flow, the 9k was on ESP.

They now think the well is between 50 to 150m from the OWC so likely not viable.

[kooba] 02/3/2021 17:18

Thanks for thoughts ..on P&A comment are you talking Lincoln Crestal and whether they can get a installation vessel for a tie back , think they took delivery of much of the kit ordered last year. Would OGA permission be forthcoming? Company seems to have forgotten about this prospect which had close to 10000bopd natural flow rate which would add great value through AM.

[fat frank] 02/3/2021 16:57

canetois:

hxxps://www.ogauthority.co.uk/media/4116/ogic-intelligent-completions.pdf

Put simply it gives you more options than a standard completion

[fat frank] 02/3/2021 16:55

At the end of the day I still believe we need a CPR showing an improved recoverable reserve figure (surely it can't go any lower)so we can drill our way out of this mess.

Oil price certainly helps

[canetois] 02/3/2021 16:55

Frank: Would you be kind enough to explain 'intelligent completion' please.

[kooba] 02/3/2021 16:33

The company also needs to address communications we need better information on shipments, update each shipment and cash impact...there seems little trust even with new management with people questioning OGA data , we also need revised figures for cost to enable better understanding of future cash flows. Cash flows have been bumpy ie dec $19m so some clarity around receipts useful. If the company is to sit on its hands for a year probably best to look at central costs and the myriad of advisors hanging on. There are too many mouths to feed ...and really what is the point of a PR retainer when the company itself puts out overtly negative comms by its own in house Investor relations team? 2 corporate brokers 3 financial and legal advisors appointed Dec.About time the company acted like a £60m market cap company that blew up on its shareholders not like the billion£ puff it became.Time to put shareholders first.

[kooba] 02/3/2021 16:15

Must say thinking about it there now appears no need to raise money any time soon ,they have no capex plans (no plans at all as far as one can tell) and certainly no reason to enter into dilutive restructuring with bond holders.We are 17 months from redemption so there should be not pressure. We had $106m in the bank at the year end and one shipment made in new year and if oil prices and production hold up then on target for over $200m by year end.We should get CPR,see if anyone at the company can come up with a work programme that shareholders can get behind and then address financing ,there can be no point in diluting until the company gives more clarity on any proposals.There would be no reason for equity holders to vote through any restructuring in current position.