Hurricane Energy Share Discussion Threads

[linz22] 17/12/2021 19:59

Bloody hell, whatever next?

HUR just can't seem to catch a break.

Must be like the whole world's conspiring against them..!

[onlylongterm9] 17/12/2021 19:55

Yawn, RNS was not even news, and completely unnecessary at this moment in time, unless of course, HUR is still aiming to further buy/load up on the underpriced CBs (or/and CA loading up here towards 30%+ stake) on the cheap, the more at a decent discount the merrier here, obviously the Christmas rush is on!
GLA

[wbodger] 17/12/2021 19:51

Nobody wants you to be here. So that works out well.

[nigwit] 17/12/2021 19:33

Wouldn’t want to be in here over the weekend.

[dr darkstar] 17/12/2021 19:13

Thus will drop 40% on Monday ....

[russian turnip farmer] 17/12/2021 19:09

Nothing bad about the RNS.. There are no funds available, but this will change after the BH is paid off.

[bocase] 17/12/2021 19:08

Given that this does not impact the Lancaster in anyway and only refers to the Lincoln asset, how significant is this in the grand scheme of things? Any thoughts from the experts.

[excellance] 17/12/2021 18:50

That's bad news

[excellance] 17/12/2021 18:47

That is terrible news

[dafad] 17/12/2021 18:31

NS Number : 1078W

Hurricane Energy PLC

17 December 2021

17 December 2021

Hurricane Energy plc

("Hurricane" or the "Company")

Greater Warwick Area Update
Hurricane Energy plc, the UK based oil and gas company, provides an update on its activities in the Greater Warwick Area ("GWA").

As announced on 14 October 2021, the GWA Joint Venture ("JV") has been engaging with the Oil & Gas Authority (the "OGA") on the technical re-evaluation and interpretation of the GWA licence potential, and requesting a regulatory amendment of the obligation to drill a well on the P1368(S) Lincoln licence, which must be commenced on or before 30 June 2022, to a later commencement date . The OGA has indicated, as part of its considerations, that it is not content to support a deferral of the obligation well unless the GWA JV partners satisfy the OGA that they will be able to fund an obligation well in a timely manner.

In parallel with these discussions with the OGA, t he Company has been exploring options to realise value for its equity share of the GWA assets, including through third party funding for the drilling of the Lincoln obligation well. To date, discussions with external parties have not resulted in formalising any interest to secure third party investment in the GWA assets.

The Company notes the announcements on 8 December 2020 by Spirit Energy and its largest shareholder, Centrica plc, regarding the strategic focus of its remaining UK assets and the limitation of any further investment in exploration and appraisal.

Following discussions within the JV, the GWA JV has elected to continue its plans to suspend further funding towards well planning and drilling of the obligation well on Lincoln in 2022 . However, funds continue to be made available in 2022 to promote the area's prospectively.

Given both the Company's financial circumstances and the related challenges of securing additional funding for the Lincoln obligation well, the Company currently believes there is a reasonable prospect that, unless the Company can secure an alternative source of funds, the GWA JV will be unable to either drill the obligation well in 2022 or to obtain a deferral of the obligation well. As such, it is reasonably probable that the P1368(S) licence sub area will be relinquished on or before 30 June 2022.

In the event that the P1368(S) licence sub area is relinquished, the carrying value of the Lincoln asset in the Company's accounts of c.$54 million would be impaired and a non-cash impairment charge recognised.

The Company will continue to actively explore potential options over the coming months to retain the P1368(S) Lincoln Licence. Further updates will be provided in due course.

-ends-

[tradoil] 17/12/2021 15:36

You care to guess what else is a fact Walter .....?

[ngms27] 17/12/2021 13:12

How can there be a billion barrels in Lancaster given structure size is well mapped and OWC is rising as evidenced by increasing water cut. If it were so large we also wouldn't be seeing the same pressure depletion curve unless the reservoir was highly compartmentalised.

Now that is a fact.

[linz22] 17/12/2021 11:05

Or, simply, just some factual truths.

I mean, the only stuff we know about for sure is in the here and now, eg. current ops and production data with which we're provided at a certain point in time via RNS, re. well 6. Albeit, with a view to meeting the bond payment deadline in some 7 months time. That much, I accept. But it is a singular issue.

Otherwise, regarding future development possiblities, and in terms of the aforementioned "balance", we still don't really know which way to wager as per the viability, and true size of, the FB reservoir, and its miraculously uplifting OWC. For PIs, it remains pure speculation. A binary guess, if you will.

With the passage of time, the general consensus might appear nowadays to be more receptive of the latter narrative by erring on the side of Dr.T, singularly, having made a schoolboy error in identifying the OWC, and overestimation in calculating the (huge) size of the oil column. However, the fact remains that the respective Competent Persons' Reports, either side of the 'kitchen sinking' RNS of last September, remain fully contradictory of each other.

Are there really only another 4, or so, mil bbls remaining, with the water-cut and prognosed pressure depletion just on the favourable side of the curve, to be able to get us over the line to pay off the Bond debt by next July - leaving the company just ahead in the black, and claiming victory Max Verstappen style? Or, is there a billion bbl resource just waiting for another well, or sidetrack at the right depth, to tap a monster asset previously claimed as "bigger than that of both Shell and BP's UK resources put together"..??

So, does one stick or twist..?

Edit: and I should mention (again) the compositional signature of the produced water 'differing significantly from the sample collected from the aquifer'. That reported observation has never been qualified, nor even re-addressed. So, true or false?

I know what I think, but as things stand, anyone's guess is as good as mine...

[kooba] 17/12/2021 09:49

Ha true..time for some balance me thinks!

[linz22] 17/12/2021 09:20

And yet the opposite was wholly the case just over a year or so ago...

[kooba] 17/12/2021 09:14

Pretty upbeat assessment..shame so little of the optimism in this is reflected in company communications ..not saying ignore the potential risks but why focus solely on them ! Difficult for the executives who argued there was no equity value only 6 months ago too move too abruptly to say completely the opposite I guess.

[senseman] 17/12/2021 08:50

At end of November, there was $58 million free cash. Bonds outstanding now only $80 million. There is $4.5 million of interest to accrue on these bonds. So net deficit is circa $27 million.
Bonds are repayable July 22. At High Court June 21, the comparable figures were $132 million free cash, $230 million owed bondholders, plus interest to accrue of $17 million. So shortfall end June 21 was $115 million. Therefore in five months, shortfall has been reduced by $88 million, ie by average $17.6 million a month.

Before bondholders require repayment, there will be five more offloads. Each offload should be minimum 500k barrels and generate at least $20 million of free cash flow (increasing to $25 mill if Brent surges back to $85)
So as long as production continues as anticipated, bonds will be repaid in full and there will be surplus cash of around $65 million (increasing to poss $85million if Brent surges back to $85). Thereafter, from the P6 well alone, until March 2024, a further 4.7 million barrels should be produced generating a further $185 million of free cash flow (increasing to poss $230 mill with stable $85 Brent)

$250m is equivalent to circa 10p a share. $315m equivalent to circa 12.5p This wholly excludes the value of other acreage, any claim to the company's Directors & Officers insurer (re investigation results) and the potential benefit of very substantial tax losses. It is not implausible that the value to a trade buyer able to extract both the value of other acreages, and the value of very substantial tax losses, could double the 10p a share (poss 12.5p) value.

[oilretire] 17/12/2021 07:42

Nothing new to anyone here, but positive coverage.....hTtps://www.heraldscotland.com/business_hq/19790301.shetland-oil-pioneer-benefits-crude-price-surge/

[bearnecessities33] 16/12/2021 18:07

Flagship WoS O&G Explorer, Developer, and still extremely decent Producer Hurricane Energy is finally in extremely good hands! And Brent once again at $75+ here today and slowly but surely gaining momentum, now all looking very very good here ahead:

[nicholasblake] 16/12/2021 17:49

It's the oil price, stupid?!

[laserdisc] 16/12/2021 17:36

2m buy now showing at 4.43p good vol today i am optimistic that its coming extension FPSO contract

[enfranglais] 16/12/2021 17:29

Not Got Much Sense still trying to level expectations with his own risk assessments, which are akin to the departing directors & hope when the bondholders are paid off & the cash still keeps coming in, he can resign like they did?!!!!!!! Doh!!!!!!

[kooba] 16/12/2021 16:51

Reasonable recovery in brent , up 2% ..all helps!

[kooba] 16/12/2021 16:48

Yep should be 4 offloads on existing FPSO contract or 5 offloads if we extend before the redemption 24 July 2022.There are central costs guess at $8m and a small amount of interest on the bonds left to pay Jan ,April and at redemption now less than $5m in total.So we could have additional $85m -$112m free cash by redemption...so add that to the say $55m year end figure totals $143-170m take off the $80m bonds outstanding. $63m-$90m by end July free of debt? Hopefully with that extended FPSO contract continuing to generate meaningful cash for 12 -18months.About time the board nailed down the extension and came up with a business plan to engage with their larger shareholders about.Parallel looking and discussing corporate opportunities around the tax position, from producing asset acquisitions to potential sale of the business. The tax losses could be worth significantly more than the current market cap alone.imo.All in good faith and there are obviously operation risks..no advise intended.

[canetois] 16/12/2021 16:21

kooba: that slight loss might be made up for by the AM bursting at the gunnels in January. We'll get there now in any event.