Hurricane Energy Share Discussion Threads

[thegreatgeraldo] 09/4/2021 11:58

The charter isn't that expensive (cost per month), as with any lease, it's the term you commit to

[jacks13] 09/4/2021 11:50

kooba, from the Bluewater Heads of Terms Agreement:

'Hurricane has the right to terminate the Bareboat Charter and the production, operating and services agreement (POSA) for convenience subject to serving a three (3) months prior written notice during the period of three (3) years from first oil and a six (6) months prior written notice during the two subsequent option periods of 3 years and 4 years respectively, all subject to payment of an early termination fee (the “ETF”). The principal amount of the ETF is USD 56 million, but the calculation of the final ETF amount is subject to adjustment mechanisms taking the remaining contracting period into consideration.'

N.B.'first oil' was declared on 4 June 2019 (see RNS 5 June). There is no calendar in the terms that set any fixed dates. Everything is geared to the date of declaration of first oil.

[kooba] 09/4/2021 11:49

Have you read any of CAs expert opinion that they have obtained from years of interaction and data collection on the company..as it goes they probably have had access to as much drilling data as available to anyone ...though currently less production data and no access to the detailed CPR just like the rest of us. With this historic access to detail and the ability to directly challenge data and being experts in oil field analysis it probably puts them in a better position than you ? Referring to their interpretation as crackpot without reading their considered view is nonsense.

[kooba] 09/4/2021 11:32

Many thanks Laser.

[thegreatgeraldo] 09/4/2021 11:12

ghhghh...... HUR have rather more data than CA.... CA's idea just doesn't make any sense ..that's why I keep asking folk who put the crackpot idea forward to explain themselves.

The sandstones seem to offer some hope, but as was pointed out by a few posters yesterday, no mention of those in the latest updated CPR. They've logged a few sandstone penetrations around the Lancs EPS & have decent seismic over the area, so should have a handle on their potential, or lack thereof....

[ghhghh] 09/4/2021 11:01

TGG

Nowhere do I claim that there is trapped oil. I'm just stating what CA have publicly said!!!

They were critical of HUR for not alluding to this in their Sept update. You posted the link yesterday!

HUR appear to be dismissive but we will need Finals or AGM to find out exactly what's going on.

[tournesol] 09/4/2021 10:49

The idea of "trapped oil" is difficult to understand. All oil in the ground is trapped. It was typically generated in one place, migrated somewhere else over geological time via permeable rocks and faults which allowed mobility, and finally encountered a seal that stopped it going any further - so it remains trapped.

If the shape of its final resting place has enabled it to accumulate in high concentration (eg a buried mountain shape) then it becomes a target for drilling. If it is too dispersed (eg a buried plain) then it doesn't.

One of the key factors which underlies all this is that oil is less dense than water and hence floats on top - which is why we get an Oil Water Contact - OWC - which is effectively the contour line that corresponds with the lower limit of the oil and the upper limit of the water. Normally you can't have oil below the OWC and you can't have water above the OWC.

We heard a lot from Trice about "trapped water" - which was described as water trapped above the OWC by oil rising into convoluted closed ended rock formations such that the water which pre-dated the oil could not escape. If "trapped oil" is a real thing then it implies the reverse - with water moving downwards into an oil bearing structure from which the oil could not escape. That would need to be a convoluted closed ended formation. I can just about visualise the theoretical shape of such a thing.

But any convoluted closed ended formation is
a) unlikely to be very large and
b) very difficult to identify from seismic.

Remember that when Trice introduced the idea of "perched water" he said that he could not quantify how much perched water there was or where it would occur. But he was very clear that it could not amount to very much in terms of total volume.

Seems to me that the same must apply to "perched oil". It will be impossible to quantify or to locate.

The proposition that significant volumes of "perched oil"
a) exist and
b) have been located or
c) could be located by more seismic and/or drilling

Seems to me to be magical thinking. At the very least it sounds like an extremely high risk idea with no certainty that any reward could be expected.

Remember the old nostrum - "Fool me once, shame on you. Fool me twice, shame on me". .

Investors in Hurricane have been taken for a ride by so called technical experts with unconventional ideas that were rejected from day one by the people who run large successful oil companies. Are those people now going to pile in to have a second go? There is no shortage of conventional targets for oil exploration. Why have a punt on something that has already proved all the previous scepticism was right?

[laserdisc] 09/4/2021 10:47

kooba re AM 4th June2019 (date of first oil) an initial 3 years term was agreed, could be extended to 10 years so must be coming up for review this June If its not extended then would be avail between June22 / Nov22
see page 3 notes accounts filed feb 2021
BLUEWATER LANCASTER PRODUCTION (UK) LIMITED - Overview (free company information from Companies House) (company-information.service.gov.uk)

[thegreatgeraldo] 09/4/2021 10:40

kaos - until an order is completed, any threshold effect doesn't have to be reported.....however, the recent large trades have been reported, so are complete.....whether those trades were shares changing hands or S/bet firms doing end of tax year stuff is another matter

[kaos3] 09/4/2021 10:34

do I understand correctly as a gardener not well versed in finances - CA does not have to report crossing of the treshold holdings as long as an order is filled - and if one designs an order in a clever way - weeks can pass without a RNS ? time enough for all it takes

[thegreatgeraldo] 09/4/2021 10:30

ghhghh
9 Apr '21 - 09:08 - 24960 of 24965
0 2 0
BoD in an invidious position.

Got CA demanding:

CB buyback (but risky - Cash was King when CV-19 ravaging oil price/revenues and what if a pump failure etc.)

Focus on trapped oil or Lincoln tie back rather than side track/water injection.

..I can't filter you, so I'll just add you to the "Ignore" list Ciao.

[ghhghh] 09/4/2021 10:27

TGG

..Give it a rest....... or outline where & how this oil is "trapped".

What are you on about? I'm OBVIOUSLY not saying there is trapped oil!!!

[kooba] 09/4/2021 10:17

When does the AM lease come up for extension with Bluewater..and what is the contracted extension period anyone?Looked back on when agreement signed and cant see the fine print on extension timetable.

[steve73] 09/4/2021 09:59

Has anyone estimated when HUR might have enough cash to pay off the bonds early..?

HUR could then embark on a FWP without restrictions from the CBH's, i.e. Extend AM lease & tie-back Linc (via a RI), or even just run out the lease and distribute the remaining spoils.

[laserdisc] 09/4/2021 09:28

another area which should be taking effect, Reductions to the Company's cost base are also being implemented.

[thegreatgeraldo] 09/4/2021 09:27

ghhghh
9 Apr '21 - 09:08 - 24960 of 24960
0 0
)

Focus on trapped oil

..Give it a rest....... or outline where & how this oil is "trapped".

[comedy] 09/4/2021 08:58

It’s all about making money, heads or tails... someone selling big or buying big?
Will know next week, today another day to keep us in dark?

[gzward] 09/4/2021 08:53

hxxps://www.boerse-frankfurt.de/bond/xs1641462277-hurricane-energy-plc-7-5-17-22

[gzward] 09/4/2021 08:16

Bonds ask bid is at 50.75... ask price has gone up since throwing the kitchen sink at the kitchen sink ask now at 56..
No mention of sandstones potential in the revised CPR ? .. i reckon CA & kerogen would not walk away from their 10 year investments and millions invested here, what's to stop them putting a team together , buy the bonds, takeover Hurricane and start working on a forward plan for Lincoln and see how well six plays out.

[leoneobull] 09/4/2021 08:05

Tournesol. Any ideas whose the 13.5 million and 14 million trades were? Tr1?

[prof_peaky] 09/4/2021 07:56

Hur is heading to 1p. Sorry for the truth

[kooba] 09/4/2021 07:55

Anyone have details of the Bluewater contract handy and when extension needs to be committed too?Really feels like the company is being very restrictive in giving shareholders information necessary to evaluate value. I'm sure it is to give limited time for shareholders to approve an awful restructuring ..the fait accompli.Be interesting who has been buying ..likely one of the existing larger holders which would confirm that such holders have not been wall crossed and "engaged" with to whatever the board and Evercore have up their sleeves. A restructuring will be subject to shareholder approval so i guess they will think about equity holders at some point...just not at the moment.

[comedy] 09/4/2021 07:46

Over 3% stock traded yesterday. 2 days high volume of stock. Is this going to be day 3 of same situation???