Hurricane Energy Share Discussion Threads

[marmar80] 10/12/2021 07:48

I think free cash is approx $58m which is 99m (end of October) -27m-14m

[sji] 10/12/2021 07:44

Rough calculations: Today's purchase bond price is c.94.88. Although slightly higher than the previous purchase of 2 days ago, still at a discount of 5.12% to nominal value!

HUR's free cash is now c.$83.5m vs. $108.5m of outstanding bonds due within 7 months. Gap is only $25m, equivalent to what HUR should earn from just another offload: next one scheduled in mid-January 2022 if oil production continues to hold well!

IMO, we are now moving in the right direction compared to what the previous BOD proposed a few months ago - a complete wipe-out of ordinary shareholders by bond holders! Within a few months' time, we should settle all outstanding bond holders and retain ALL the company's assets and start planning how to exploit them in the best interest of equity holders. I was always optimistic and remain more so now.

[marmar80] 10/12/2021 07:31

$108m to go. 6 months left. Will they make it?4p per share, £80m mcap. Still some cash in the bank. I think the share price will be trading now between 4 and 4.5p until we hear about an extension or new drilling plan. Next update will be the one to read carefully.

[kooba] 10/12/2021 07:16

Stifel are acting as agent for holders they do not hold themselves , however due to the size of repurchase pretty sure must be one of the big AHC holders packing their bags.Company seems to have paid a tad more here than last repurchase looking at saving per nominal. But still imo shows confidence and is chipping away at redemption figure and making better use of cash that is sitting in the bank,Should be production update early next week.

[kaos3] 10/12/2021 07:09

Respect!

If Stiefel gave up - the rest will follow imho

[agnabeya] 10/12/2021 07:06

Hurricane Energy plc

("Hurricane" or the "Company")

Notice of Repurchase of Hurricane's U.S.$230,000,000 7.50 per cent. Convertible Bonds due 2022

Hurricane Energy plc, the UK based oil and gas company, is pleased to announce that, following the convertible bond repurchase announced on 8 December 2021, its subsidiary Hurricane GLA Limited has completed the repurchase of an additional U.S.$28.5 million in aggregate principal amount of the Company's U.S.$230,000,000 7.50 per cent. Convertible Bonds due 2022 (the "Bonds") (of which U.S.$137,016,000 (excluding the Bonds held by Hurricane GLA Limited pending cancellation) in aggregate principal amount are outstanding) for a total consideration of U.S.$27.3 million, including accrued interest.

The Bonds were acquired from Stifel Nicolaus Europe Limited and will be surrendered for cancellation. Following cancellation of all purchased Bonds, the Company will have further reduced its aggregate principal amount of the Bonds outstanding to U.S.$108,507,000 and lead to a further net saving in debt repayment and interest charges of U.S.$2.8 million.

The Company will continue to evaluate its liability management options which may include further Bond repurchases from time to time, subject to market conditions.

This notification does not constitute or form part of an offer to sell or purchase, or a solicitation of an offer to sell or purchase, the Bonds or any other securities.
Antony Maris, CEO of Hurricane, commented:

"The net savings from the Bond repurchases over the past week have been of significant benefit to the Company. We will continue to take advantage of the volatility in the oil price and the economic indicators, and any inbound offers from the holders of the Bonds, to reduce further our outstanding debt, whilst maintaining an appropriate cash position. While bridging any funding gap for the repayment of the Bonds remains a challenge, we will continue to look at all the options available to us to meet our debt repayment obligations and maximise the value of our assets."

[thecomposer] 09/12/2021 15:33

Noting here with interest for HUR Today:

Brent Oil at circa $75+
Dream Production Continuing/In Place
New Proactive BoD In Place
Bond Purchases/Debt Reduction Progressing Very Well
CA Still Continuing to Increase their HUR Stake and Getting Ever Closer to 30% Mark
Tanker filled with HUR crude offloading again at decent prices
HUR Cashflow now Significantly on the Rise
Tight Supply/Demand Fundamentals ahead for Crude
Zero% Tracked Institutional HUR Short Positions Today with remaining CBs trading almost at Par Value
Extremely vast prolific West of Shetlands acreage to further explore & develop with variety of options including farmout/JV
Massive Company Tax Credits ready for utilisation
..................................................................................etc....................

So much potential here and yet HUR share price strangely still trading ~4p! This crazy undervaluation here cannot last, IMHO, please DYOR, and GLA.

[back2basics1] 09/12/2021 09:33

The Herald:

“Shetland oil firm cuts debt burden as crude price rises”

[nicholasblake] 08/12/2021 13:37

@Wbodger to get any remaining Bondholders to extend is going to require a coupon of 15%+.
Must be cheaper funds elsewhere!

[scaleyman] 08/12/2021 13:35

Wbodger crooks should indeed be history, preferably swinging from the yard arm, and Dr Trice needs to shout up if only to prove he's alive!!

[kooba] 08/12/2021 13:08

We need maybe $25m to be held in escrow against termination of an extended AM contract with Bluewater , i would anticipate such funding would be in place before redemption date ensuring continued production. From July the company could continue production with the benefits going to the balance sheet.,,for the benefit of shareholders.Estimate of recoverable for the following 18m are somewhere between 3.5m and 4m barrels.If one takes a higher production cost say $30 pb and current oil price $76 this could if the company model pans out lead to cash flow of $150m over that period taking 3.5m..higher oil price and /or higher recoverable obviously pluses.Continued production is obviously not without risk but the above is based on company's own forecasts and one of the main reasons the bondholders agreed to extension of terms ( as well as nicking the company!) Still maintain a corporate solution ie a take out or Hurricane becoming a production acquisition vehicle alongside the above production plan is the best way of establishing meaningful shareholder value and a new sustainable funded company.

[wbodger] 08/12/2021 12:32

Tin hat on then, LOL.

You can't choose your shareholders/bondholders. Fact is, the crooked cram-down is history. Move on. The longer oil prices are profitable we should be exploiting the field and that will need some investment.

[wbodger] 08/12/2021 12:01

What I said isn't inconsistent with your first para. Most of the AHC might have sold by now, especially the speculators (carpet baggers). Their time is over, opportunity came and went, no advantage in holding on till June. Anyone who bought CVBs at 55 pence will have a tidy profit (they might have sold to Stifel). But other bondholders might have no immediate use for the funds and could be open to an extension offer.

We're going to be borrowing money from somewhere, just not $230 million.

[kooba] 08/12/2021 11:36

Can't think any remaining bondholders (largely AHC)would do anything reasonable..they are miffed their cunning plan did not get through and they will want to extract a huge price for renegotiating even a small amount of debt in a restructuring imo. Need to clear them out..get the bluewater extension signed and continue production and rebuilding coffers fro the equity holders.Parallel they should be seeking corporate deals that value the huge tax losses..likely worth more than the operations and licences.I personally would seek to revitalise Hurricane by trying to buy other producing assets on the cheap enjoy a big chunk of tax free income whilst planning to finally and fully establish whether the remaining licences including jv can be shown to have real value and whether a lower risk work programme can be agreed with current knowledge to try to extract greater value from company assets.I believe oil will move ahead as the under investment in production global starts limiting production ability while demand likely continues to grow in developing countries.

[nicholasblake] 08/12/2021 11:11

Perhaps the most pleasing aspect of repurchase is that Board seems to have ceased asking Bond Committee for permission on how to run the business.

[monkeybusiness1] 08/12/2021 10:45

CA may already have a buyer (or a financier/JV partner etc.) sitting on the sidelines, and that’s why they’re still loading up big time, hence the more CBs purchased here at a discount the better, time will tell!

[wbodger] 08/12/2021 10:36

I can't see the value of HUR paying off all the bonds when they need to spend money on the field. It makes more sense to negotiate with some willing holders to roll over for an extra 18 to 30 months (the Lancaster licence) and use the money drilling another well. At this oil price - probably available for at least two years - they should be able to take two more years of oil and still decommission in good time. Whether they could do a full field development is a bigger question.

Did Stifel acquire those bonds in the market or were they holders in their own right? If the former it suggests the buy-back desk is open for business.

Also, good riddance to Spirit. Not great partners afaics.

[kooba] 08/12/2021 10:12

And beyond hey ..more of this attitude !https://youtu.be/2VSYmGSJtCA

[kooba] 08/12/2021 09:47

Bit of consolidation in Brent recovery overnight but moving ahead again ..if the more relaxed attitude to Omicron continues should see back in the 80s soon enough.$75.40.

[kooba] 08/12/2021 09:42

Effectively buying back at 88c ...saving $1.8m on $15m nominal buyback. Guess there are 2 quarterly payments still due before redemption so saving interest..3.75c per bond. Sure better than they are getting in the bank !Effective saving and must have risk assessed showing confidence in repaying remaining outstanding.

[kooba] 08/12/2021 09:37

True Spirit have no interest in spending and their best bet at monetising is selling tidy chunks of producing assets. I doubt they attribute value to the Hurricane jv and might even pass their interest back to Hurricane to further tidy up packages for disposal.

[laserdisc] 08/12/2021 08:36

Spirit Energy's future strategy will be to realise value from its remaining portfolio of assets in the UK and the Netherlands while minimising further investment in oil and gas exploration and development

[horndean eagle] 08/12/2021 08:34

On a side note Spirit have sold assets today. The balance of the assets they are going to wind down and not put any more money into. That includes HUR venture. Those hoping to ascribe value to that might be disappointed.

[sji] 08/12/2021 07:57

According to my rough calculations, HUR paid a price of about 92.45 for the bonds (vs. a current market price of 89.83), a good 7.55% discount to nominal value and only a 2.91% premium over market price. IMO, it's a very small premium to buyback almost 10% of outstanding bonds. I hope that HUR can continue to buy more bonds on the market in the coming days/weeks. It has a lot of free cash that it can use at the moment.

I guess that the market should be happy with today's news.