Hurricane Energy Share Discussion Threads

[kooba] 05/9/2022 08:24

Good points well made.

[steve73] 05/9/2022 07:47

Since they closed in well 7z, the AM has been operating with a lot of unused capacity. Had well 8 been drilled and producing at that point, then Opex costs (per barrel) would have been around half the costs we've seen.

I realise that the outstanding bonds prevented this (especially after the BH's lost out on their attempt to steal the co), but there is no excuse for continued deliberations. Well 8 could have been planned and largely designed (unless the BH's controlled HUR's spending so tightly), although I realise any firm commitment to LLI's or a drill rig was probably beyond HUR's capability.

But from here on, any further delay is simply wasting the AM's unused capacity.. In addition to the higher overall OPEX costs, there is the very real risk that the AM could require major maintenance (eg. to the swivel), or even to the vessel itself (remember she's an old lady now). There is also the risk that by the time any additional production is realised, the present high oil price may have evaporated, either due to crushed global demand, or increasing total supply (including, eg. Russian exports to the west being re-established).

It's nearly always best to accelerate production as much as possible within available processing capacity...

Perhaps not for a single asset though, when the longer mgmt can delay, the longer their jobs are "protected". A further shake-up is essential IMHO.

[fat frank] 04/9/2022 20:50

I still fail to understand why they can't update us

[kooba] 04/9/2022 20:24

Might that be the issue? Hope not.But well 8 works ideally overlapping production with well 6 ..if that can't be delivered then the economics probably look quite different ..so the earlier the better if they are going for it and they need a rig!

[fat frank] 04/9/2022 20:13

I don't know of any rigs that are available

[fat frank] 04/9/2022 20:11

sheepshagger: 'The 2015 article is very important. It shows the potential even with lower reserve numbers. P8 and other wells can soon increase the reserves'

Please read up on what has happened with HUR: the reserves quoted in 2015 no longer exist.

They will not magically come back.

Have you any knowledge of the oil and gas industry???

[kooba] 04/9/2022 20:09

Anything pre 2019 is of no worth...its a complete rebase. There may be more in Lancaster but the quantum across the portfolio is never going to be anywhere near what the earlier CPR came up with...a very small fraction in fact but still highly profitable against current market cap if managed correctly.

[kooba] 04/9/2022 20:04

What are the chances of securing a rig though for Spring '23 , thought market was very tight?

[sheepshagger1] 04/9/2022 20:03

The 2015 article is very important. It shows the potential even with lower reserve numbers.

P8 and other wells can soon increase the reserves.

[kooba] 04/9/2022 20:02

Judging by the allowance Hurricane has published for end July it would appear they are not expecting to pay full 25% EPL ..likely they have some capital allowances off settable . They really should clarify ..so the sheer amount of money recoverable from EPL may not cover capex for some time.They had May off load unclear as to whether it was subject to EPL and then July off load definitely would be which was ball park was $40m + net cash ...i see they have only allowed $5m for EPL to end July. This would certainly indicate that are paying only half of the 25% tax and that's if May was levy free which is not confirmed which maybe means it could be lower! Definitely needs explaining!

[fat frank] 04/9/2022 20:02

But there is money in them there hills...

I just want to see a rig secured for a one or two well campaign

This is something I have been saying for 3 years

[mirabeau] 04/9/2022 19:59

Lancaster is the way forward. Use any means to max output from P6 to finance further development at wider Lancaster. After all, Lancaster is the one field the company truly understands and that's half the battle

[fat frank] 04/9/2022 19:58

sheep; if you had been involved as long as some other (suffering) shareholders you must realize that the republication of what is now a very inaccurate statement of HUR's future is not helpful.

The recoverable reserves alluded to in 2015 simply do not exist.

FACT

[kooba] 04/9/2022 19:52

P8 is their high probability short term return project..as you point out though that may well not be the extent to further recoverable on Lancaster by any means.

[sheepshagger1] 04/9/2022 19:50

I posted the 2015 article as it just shows the potential of the company even with a lower reserve base which I knew about.

[kooba] 04/9/2022 19:49

The value remaining in the licence would be recognised in a deal along with the tax losses worth realistically 5-10p plus existing cash with continuing production...if someone offered the right price derisking entirely I'd be happy to listen.

[fat frank] 04/9/2022 19:49

P8, and maybe further is the way forward.

There is oil in Lancaster, and it flows - trust me this doesn't happen on every drilling campaign.

[fat frank] 04/9/2022 19:46

Go back through my posts - maximum value of HUR will only be released if we get more out of Lancaster

[fat frank] 04/9/2022 19:44

sheepshagger14 Sep '22 - 19:36 - 35067 of 35068
yes I did have personal contact with RB some months ago and then I started buying. I can't say anymore than that.'

So why did you post a reference to an article by RB posted in 2015 a couple of days ago as if it was relevant news?

[marmar80] 04/9/2022 19:41

Already forgot about that! https://www.ft.com/content/0e049979-7625-48dd-a414-17c30f55737ehttps://www.ft.com/content/0e049979-7625-48dd-a414-17c30f55737e"The bolstered investment incentives look somewhat absurdly generous. These were already ample pre-levy: a company investing £100 in North Sea oil and gas could cover £46.25 with a tax deduction. After the new investment allowance is included, the government is effectively covering £91.25 of every £100 spent."In this case the best solution is to drill one after another.

[fat frank] 04/9/2022 19:39

kooba: I am an Oil Man. I want to drill, find oil and make money. The corporate side of things I do not understand.

[sheepshagger1] 04/9/2022 19:36

yes I did have personal contact with RB some months ago and then I started buying. I can't say anymore than that.

[kooba] 04/9/2022 19:35

I don't think anyone calls him Rich for clarity..it's Richard as far as I am aware.

[kooba] 04/9/2022 19:33

Difficult to know what folk want... many want immediate confirmation on well 8 that to me would be a mid term positive , some like me would like a corporate deal ( take over or reverse) to take advantage of the position the company finds itself in with cash production and tax losses..any decent recognition of that in monetisation short term fine by me.The company going out for new bolt on acquisitions or investments I find more problematic as I see no in house experience in acquisitions and I must admit would be nervous of them getting a deal that offers a low risk return on capital that well 8 would provide.Interesting in others thoughts.