Hurricane Energy Share Discussion Threads

[tournesol] 07/4/2021 12:52

MugP

bonds only available in large denominations - at par I think it was 100k so even today still 50k - which is more than most people would be interested in doing

[mug punter eradicator] 07/4/2021 12:17

why is HUR value at £55m?

Considering sharesholders will get 1% of debt equity swap in due course. Then another rise and repeat.

Delta trading, buy the bonds short the shares.

[mrwaite] 07/4/2021 12:15

We have a 33 page summary of the new CPR, of which 23 pages are boilerplate definitions. No new data, based entirely on the Board's estimates which we had some time ago. As my many years have gone by I've observed CPR's becoming less and less informative to investors and more protective of the authors. They are, in nearly every case, imo a total waste of scarce cash these days. No axe to grind, as I was taken in by Trice and the 'hidden' well result. My tiny residual holding is simply to keep me interested in the final demise of my worst investment decision in 50 years. I refrain from wishing shareholders good luck, as there is nothing left here to hope for.

[tournesol] 07/4/2021 12:00

Good summary of today's news by Energy Voice:

...Hurricane Energy: ‘No certainty of any future activity’ on West of Shetland assets

Hurricane ... has stated there is “no certainty of any future activity” on its West of Shetland assets, including its flagship Lancaster field…

The competent persons report... has underscored a dramatic downgrade in reserves ...now warned of potentially no returns for existing shareholders….

Halifax, once thought to have up to 1.2billion barrels of resources, is now expected to be written-off with no contingent resources being attributed to it….

...Hurricane had been hoped to be a new West of Shetland powerhouse, once boasting to have 2.3 billion barrels of combined proven and probable reserves and contingent resources.

Hurricane... has to repay or refinance a £180m convertible bond in 2022 ...restructuring could lead to a shareholder wipeout. It had cash reserves of £64m at the end of November.

...“There is a risk of significant dilution to existing shareholders from a possible restructuring and/or partial equitisation of the convertible bonds and of potentially limited or no value being returned to shareholders.”

If a deal can’t be reached for further activity at Lancaster then it would produce until reaching its economic limit and then decommissioned, “with potentially limited or no value returned to shareholders”.

ERC Equipoise estimates the flagship Lancaster to have proven plus probable reserves of just 7.1million barrels from its single producing P6 well…

Assuming a side-track well can be drilled (P8) in 2022, with water injection to boost production, ERCE estimated contingent resources of ... 34.7m in the mid case (2C).

However, that’s predicated on Hurricane being able to fund such a development so “there can be no certainty of any further activity in relation to the Lancaster field”, the firm said….


See:-

hTTps://www.energyvoice.com/oilandgas/north-sea/313030/hurricane-energy-no-certainty-of-any-future-activity-on-west-of-shetland-assets/


Amazing to compare/contrast previous dreams of 2.3 billion bbls vs current hopes of 35 million.

[tournesol] 07/4/2021 11:44

Hi GHH

can't remember - did you buy the CB's at par?

if so, my condolences.

if not, are you cllose to break even?

regards

T

[kooba] 07/4/2021 10:53

No great surprises ..but obviously the share price was discounting a more positive assessment. Truth of it still is that the company is solely focused on restructuring the CBs at the expense of anything and the lower the expectations and share price the easier it will be to get equity holders to stomach the unpalatable deal they are conjuring with. The results when they come will look shocking on write offs but the production data is rather more important right now and that should be with us in the next few days.

[jacks13] 07/4/2021 10:51

Dr Trice? Some would have you believe that he is at this very moment donning his mask and cape and pulling up his underpants over his trousers.

[thegreatgeraldo] 07/4/2021 10:27

tournesol
7 Apr '21 - 10:14 - 24864 of 24865
0 0 0


The simple central fact is that Hur has very limited reserves of oil. They will run out before year end 2022. Before that point they have to repay the bond holders and in the next month or two they have to sign up to extend the lease on the Aoka Mizu.

....As I mentioned last week, they also have to address the Going Concern issue for the year end accounts. As part of that, it would be handy to come to an agreement on a flexible extension of the FPSO lease

[soilderboy] 07/4/2021 10:15

Think you should seek help man. Join the Army!

[tournesol] 07/4/2021 10:14

It's astonishing that there are still people floating conspiracy theories here - that management are hiding good news or undermining the share price. It's astonishing that some people think that the man who led the co into this quagmire could return and rescue it. It's astonishing that anyone thinks for a second that the price of oil makes any difference whatsoever to the company's chances of survival.

The simple central fact is that Hur has very limited reserves of oil. They will run out before year end 2022. Before that point they have to repay the bond holders and in the next month or two they have to sign up to extend the lease on the Aoka Mizu. They have very little room to manoeuvre.

There are believed to be some untapped resources which could theoretically be tapped in order to bring additional reserves on stream. But they do not amount to a great deal and they would require significant expenditure to drill, appraise and bring on stream. Hur would need to raise new capital to do this. There would be significant risk of failure, so the terms available would be disadvantageous.

The only surprise today is that the share price is holding up as well as it has. It looks to me like someone in a cartoon who has run off a cliff and is suspended in mid air with their feet going round. I do not think it ends well.

[wish i wasnt in rbs] 07/4/2021 09:40

Cobra blocked

[cobra kai] 07/4/2021 09:37

Sensei has ordered to retreat to the safety of our Dojo.

We will do battle later on on, many of our friends are being put in body bags, we will avenge them.

Do or Die
Cobra Kai

Strike First
Strike Hard
No Mercy

[dave999dave999] 07/4/2021 09:28

looks like an attempt to precipitate some kind of take over. Drive down share price

one well producing but destined for exhaustion. BUT with more oil in areas that have previously been abandoned where we have no cash to, and no approval to develop...

pity us, and when the share price is low enough punt in a bid,take over and give give Mr Marris his position on the new board.

we'll be made a derisory offer for our shares which we'll almost certainly have to accept. and be frozen out of any future upside unless we have the confidence and cash to invest in the newly structured company

I should have stuck more into Rockrose and Savannah

This is looking more and more like UKOG i.e depressing



Dave

[steve73] 07/4/2021 09:06

OGA "normally" prefer operators to avoid operation below bubble point (unless specifically designed to be operated as such) as gas break-out can often damage the reservoir, and reduce the ultimate recovery. In some cases a gas cap is allowed to form, and this helps provide pressure support, providing they avoid producing the free gas (when you'd lose the benefits). Some fields are deliberately "blown-down" to get the last reserves of gas out once the oil production has been maximised.

Certainly for Lancaster a gas cap should form at the top of the reservoir before it starts getting produced, and this would reduce the rate of reservoir pressure drop.

The problem could be if the gas takes a "short-cut" from the cap via a large fracture to the well... as I've said previously, gas breakout at the well is not good for the ESP's (loss of performance as well as possible damage), and it could then rapidly depressure the field.

Otherwise, not a good RNS IMHO.

[ghhghh] 07/4/2021 09:05

I thought RNS would trash share price so who is buying? 50m traded so far? Could it be CA? Lets see volume and price at close of play...

ngms

Lincoln is all about risking. If low risk it can be farmed out.

[d1nga] 07/4/2021 09:02

As I said in January

'It a share for a few to scalp a little here and there but basically uninvestible'

Now is the oga going to give permission to flare all that associated gas once they reach bubble point.In these tree hugging climate change times

No chance

[the best is yet] 07/4/2021 08:54

Where’s BTbigmouth today? If anyone sees him send him back to the other boards he trolls!

[kaos3] 07/4/2021 08:44

as far as I know new BOD took no legal action against dr. T which is strange - if oip is so different an the sums involved.

and that is telling.

neither any one else

[leoneobull] 07/4/2021 08:35

Trading size and price paid does indeed suggest some big shorts closing out on share price weakness. Let's see if updates on shorttracker in coming days

[ngms27] 07/4/2021 08:35

They don't say it, but do infer it.