Hurricane Energy Share Discussion Threads

[kinwah] 16/3/2023 10:22

I guess there'll be holders of HUR who'll be bed and ISAing their holding. Receiving a large dividend isn't attractive if you're a higher rate taxpayer. Then you have the question whether you can hold the deferred consideration units in your ISA. All very tricky from a tax perspective so I wish holders well figuring out the best strategy.

[sensemun] 16/3/2023 10:20

Are they actually giving anything for HUR?

I will "buy" the company. Give you all the cash it already has as a payoff and then bank the production profits. Everyone happy with that? Good....I'll make the call.

[riskreward1] 16/3/2023 10:18

This deal is 6.02 p the 6.48p later payments will never hapen the terms are not attainable.

[xxproinvestorxx] 16/3/2023 10:17

It is such a poor deal. We are effectively funding the purchase for them, have pretty much all of the risk, with a fraction of the potential upside.

Strong NO from me.

We're far better off getting paid circa 5p dividend now, then a dividend every quarter until well 6 becomes uneconomical. Finally sell the company for any remaining tax credits (won't be much but still will have value to the right buyer).

A 12.5p/share up-front payment (6p as a dividend from cash in bank with the remaining 6.5p coming from the sale of the company) is not ideal, but would be acceptable for most I'd imagine. However, the way this deal is set up is not in our interest to accept. There is NO guarantee we'd even see payments higher than the the initial 6.02p upfront payment (Which we are effectively funding ourselves).

[wbodger] 16/3/2023 10:16

Irrevocable Undertakings

· In addition to the irrevocable undertakings from the Hurricane Directors, Prax has also received irrevocable undertakings from Crystal Amber Fund Limited ("Crystal Amber") and Kerogen Investments No.18 Limited ("Kerogen") to vote, or procure a vote, to approve the Scheme at the Court Meeting and vote, or procure a vote, in favour of the Resolutions at the General Meeting in respect of a total of 894,181,210 Hurricane Shares, representing approximately 44.89 per cent. of the ordinary share capital of Hurricane in issue (excluding treasury shares) on the Latest Practicable Date. The obligations of each of Crystal Amber and Kerogen under their respective undertakings shall remain binding in the event of a higher offer, or any other bid or offer for Hurricane.

So there it is. It passes. I will look forward to Crystal Amber's update to their shareholders for an explanation of why this is good for them.

I guess that CA may have more faith in a new Board (Prax) and a new Nomad than with HUR's, or possibly they have an exit for their Deferred Consideration Units.

So much for the "word on the street", LOL.

[marmar80] 16/3/2023 10:12

Sh*t offer, shocking to me. Thought at least we will see 7.70 confirmed immediately and something else on the top. Unsure why Crystal Amber sees it as a good deal. They have to close the shop next year. Means they will nit get the full 12p+ as that would require them to hold for extra 2 years.

[mortimer7] 16/3/2023 09:59

Seems to be a lot of "cons" .... Convoluted, Confusing, Consideration Units.
Trying to tell us something?

[kooba] 16/3/2023 09:58

Yep..well you weren't going to get to that figure on 17.5% of well 6 alone in my view. Unfortunately i think the 12.5p is just there as window dressing..one would certainly hope to have additional payments as long as well 6 produces economically but to get to 12.5p must involve the section i posted on using Hurricane for acquisitions utilising the tax credits..no guarantees on that strategy and needs more detail.On well 6 alone i cannot get to an wind up figure close to 12.5p on available information.

[marmar80] 16/3/2023 09:50

There is a cap so the 12.50 is maximum you can get imo.

[kooba] 16/3/2023 09:47

Everyone seems convinced that it is worth far more , but it has to be accepted that there was an open sale process with "strong interest" and this presumably is the best that anyone put up..so the choice is take this where you get most of the cash held back in a few months and a share of future upside from well 6 and potentially more production interests..the interesting piece in the statement might be that shareholders would also get a share of any acquisitions made by Hurricane as a vehicle for other production assets utilising the tax credits. We probably need more colour on this. So its either this or go it alone with a single asset under current management it seems.Unfortunately the economic life of well 6 and the other associated risks around production mean it is not certain to continue to produce to guarantee any better result as far as i can tell."Enhanced Upside: There is a significant potential for upside to be delivered to Hurricane Shareholders, beyond that which could be realised as a standalone company, should Prax leverage Hurricane's accumulated tax losses to make production acquisitions in pursuit of its upstream growth strategy in the near to medium term. In this case, Hurricane Shareholders will receive 12.50 pence per share, assuming payment of the Supplementary Dividend Amount in full (by way of the Supplementary Dividend and/or Deferred Consideration Unit) and full value is delivered by the Deferred Consideration Units (including any balance of the Supplementary Dividend Amount not declared as a Supplementary Dividend)."

[enfranglais] 16/3/2023 09:44

They need 75% acceptance & any shareholder (apart from the Corporates wedded to the deal), who vote for this need their heads examined!!!!!
DEAL OR NO DEAL - NO DEAL!!!!!!

[sue999] 16/3/2023 09:43

For those who are not holding, this is a great price to get in as you will be getting 6.5p back and for 1.5p you could be getting another 6.5p in due time.

[sensemun] 16/3/2023 09:31

Shocking deal

[senseman] 16/3/2023 09:30

RE: Today's offer Today 09:19 - SENSEMAN LSE

I do NOT consider it wise selling on today's spike to 8p
I do NOT consider the deal good and I will AVOID LIKE THE PLAGUE by voting against
The deal gives 6p cash within couple of months - which we could have been given anyway after end June offload
The rest (another 6.5p TOPS) we get in dribs ONLY IF well 6 does not fail - no less risk than if we just kept on as is
We lose all and every upside

[agnabeya] 16/3/2023 09:24

There’s a fair amount of buying right now. at least, more than usual

[senseman] 16/3/2023 08:56

RE: Today’s Offer Today 08:18 - SENSEMAN LSE

STINKS - NO BETTER (EVEN WORSE) THAN AS CURRENT - WE RETAIN RISK - UPSIDE THROWN AWAY - BoD STAY IN JOBS

[kooba] 16/3/2023 08:54

Well the board and 45% of shareholders irrevocably accept this deal after months of formal sale process discussion. They obviously see this as de-risking the single asset and repaying maximum cash to shareholders near term. Whilst still having long term upside if the asset continues to produce.Is this not a slam dunk?

[agnabeya] 16/3/2023 08:53

Have emailed Hur- basically asking WUT?

They might reply.

[marmar80] 16/3/2023 08:40

Wrong. The bod should not sell it under those conditions as there o difference to the shareholders. No future payments if the pump fails. Same as now. Giving the tax lossws for free too.

[c2b] 16/3/2023 08:37

Surely there must have been an offer from a 'real' oil company that would have used the money to fund development of an existing find? Such a deal that would have given shareholders a real upside?

[evilblues] 16/3/2023 08:36

Written in haste. I see CA & Kerogen approve.

[poacher45] 16/3/2023 08:34

When you consider the deals that can be had in Asia at very low prices. The windfall tax which is ridiculous. The fact that production could fall dramatically I think you are lucky to get this deal.

[marmar80] 16/3/2023 08:34

Another attempt to steal the company.

[xxproinvestorxx] 16/3/2023 08:32

Definitely a vote against that offer for me. Shareholders getting a real rotten deal.

So we get paid less than the cash we have now, still take on the same risks all to get out a 'possible' total of 12.5p? And they have made the structure as complex as possible to lure make it seem like we're getting a good deal?

[marmar80] 16/3/2023 08:23

Agree. I see it as a stupid deal. Makes no sense to sell it under those conditions.Pay us 12p now and we are Ok, Prax!