Hurricane Energy Share Discussion Threads

[marmar80] 30/3/2023 10:34

I feel that even oil rising back to 100 dollars won't change their decision and our share price will remain unchanged.Some oilers gained 10% on oil prices rising up

[kooba] 30/3/2023 07:58

I get you and that was something the current management explored and said they were in advanced discussion on some acquisition targets early last summer..but brought nothing to shareholders. I'm not saying in context going it alone with a shiny new management building Hurricane through acquisition is not a valid idea..basically copying the Prax model i guess.IssuesLargest shareholders want maximum cash out ..don't seem to want to roll the dice again.Need a highly competent new management well versed in m&a like Prax have built. Any ideas?Needs targets with existing production or very late stage development projects , whole process could take many many months year + ?Need to move very quickly on completing an acquisition so as to secure the tax losses whilst well6 is still operating.Then when you get it all together by the end of 2025 Labour are in Government and take all the profits ! Not sure UK oil and gas is the place to be!!

[marmar80] 30/3/2023 07:36

Thank you for your opinion kooba. I still remember losing a lot in the oil company that went under cause they could not repay debt in time despite generating a substantial cash from the operational own wells. They had a debt of 20m USD and their annual net was 20m. The bank has not agreed to extend the maturity. The Delaware court declared their bankruptcy and advised sale to cover their debt. A miracle has happened as the bid arrived a minute later and they got offered exactly 20m so there was nothing left for the shareholders. New owner took all and a year later had their cash back.So all I'm saying, we could be a buyer, not the one who has been put on sale on unfavourable terms.

[kooba] 30/3/2023 06:42

Nuts in Telegraph, "Sir Keir Starmer, the Labour leader, will on Thursday blame the Conservatives for the average local authority increasing its rates by an average of £99 from the start of next month.He will argue that if Labour was in government it would raise the windfall tax rate to 78 per cent – the rate used by Norway – and backdate this to raise £10.4 billion across the next two years."Will kill off all North Sea investment."Backdated too?"

[kooba] 30/3/2023 06:23

Headlines i am seeing on Energy Security Day is no proposed change in EPL ..unfortunately the political battlefront of the levy is to the fore over the long term negatives of it. Sir K and sillyband would like nothing better than grab the headlines saying the Govt working for 'BIG ' oil. In the telegraph today sir K talking of expanding the levy to subsidise council tax....never has such a stupid tax been so over committed ..it sounds like the EPL will be funding tens of Bs of additional labour spending..when in reality it probably contributes far less than £10b and that amount has shrunk as the oil price has declined..all nonsense.I have however seen that there could be a separate oil and gas statement next week ..they just didn't want pro "big" oil headlines on what was to be a "green" day. So lets talk about carbon capture today.Lets see

[kooba] 30/3/2023 06:13

I can see many reasons why this structure that is not without thought and some merit from a shareholder point of view ( I'd be delighted!) is not going to be remotely acceptable to Prax..the advantages to shareholders ( loads of money)over advantages to Prax ( postage costs) are not well balanced! My understanding is that Prax need 100% ownership to be able to utilise the tax position..hence why royalty units not residual equity. I do not want to get into the minutiae of the idea that suddenly makes the scheme proposal almost simple and as a shareholder if the board come back and say blimey guvnor after months of negotiation we never tried to get to keep all the cash and get a cash bid on top for the balance i would be surprised. To get to the convoluted transaction already proposed i imagine was a drag and it seems the 45% were involved in the final agreement..suspect that all "better" avenues were explored.anyway good luck and hope they at least reply..possible they are restricted as are in a bid situation.But lets not forget the board have recommended the deal and have irrevocably accepted as individuals along with the 45%..I'm not sure going back to renegotiate a massive change in the absence of any other competing offer is really a thing.

[senseman] 30/3/2023 01:16

marmar - sir, hat donned to you

[marmar80] 29/3/2023 22:24

I have sent the below email/Option B/ to Hur BoD, RB of CA and Kerogen. Tried to ask for any opinion today as no reply has been received however my new email has been classified as a spam, unfortunately, what a surprise. Dear Sirs,I have an idea which I would like to share with you all.The idea is to proceed with the "Prax deal" and to keep the Hurricane Energy listed. There are benefits for both sides in this outcome. Let me explain this please.I believe that Prax is interested in the Hurricane's producing P6 well, license and in access to the tax losses. You can correct me if this is incorrect or something is missing here.Large shareholders such as like Crystal Amber or Kerogen are happy to proceed with the "Prax deal".Many of the Hurricane private small shareholders are rather interested in receiving more funds upfront or keeping the company listed and operational.What if you could split Hurricane Energy into two companies, say Hur A and Hur B and this way satisfy both sides?Hur A - retaining all the unrestricted cash as they are on the sale day, keeping the stock listed on the exchange and retaining entitlement to 17.50% of all future net revenues earned by the Hur B (part of DCU).Hur B - receiving P6 well, licenses, restricted funds and tax losses in 100% (if not possible to keep a small 10% in Hur A for their future use).Prax buys Hur B for cash, but not for 0.83p per share as currently, but for 4pps (approx £80m). Same time Prax will keep ALL the cash stream from the operational P6 (no bi-annual dividends), license, £300m of tax losses  and £45m of restricted funds.  Hur A to pay dividend of 4pps to own shareholders from the sale proceeds.Hur A to return part of unrestricted funds of 3pps to own shareholders on the sale day.Hur A to pay special dividend to own shareholders from 17.50% of all the future Net Revenues earned by Hur B (capped at 6.48pps).Hur B (Prax) to proceed with the acquisitions as they wish.Hur A remains listed - to represent existing shareholders in future dealings with Prax up to end of year 2026. No shareholder is concerned about understanding of tax implications related to DCU proceeds or ISA, no shareholder needs to cash any cheques, trade DCUs on the matched bargain portal or talk to own financial advisor about understanding of DCUs (this part is is impacting many small shareholders).Hur A retains 10% of tax losses (if possible) and with own cash is able to proceed with a takeover of a low cap producer with debt to clear. Hur A to clear that debt immediately. This deal is allowing Hur A to pay annual dividend of 0.50-1.0pps as the taken over company is a producer and has no debts.This deal is allowing Hur A to spend £1 and receive £91p back while investing in a new project.Advantages to Hur A shareholders:A) 7p per share paid in 2023 (capital return + sale proceeds)B) right to a special dividend from 17.50% capped at 6.48ppsC) no need to deal with tax matters related to DCU proceeds received off the exchange and no need to deal with ISA holdings before and after the saleD) keeping the company listed will allow shareholders to sell their shares at any timeE) any share price higher than 0 (zero) is creating additional value to shareholders immediately after the splitF) possibility of receiving 0.50-1.0p per share from 2024 (from taken over company)Shareholders to deliver a list of companies meeting the criteria. Dividend of 0.50p per share should be available if the taken over company delivers 10m return a yearG) return from investment can be higher than 12.50per share by end of year 2026.Disadvantages to Hur A shareholders:A) no bi-annual dividend from Prax (Hur B)B) possibility of receiving 0.50-1.0p divi per share from 2024 (from taken over company) depends from a success of finding a suitable company to buyC) selling shares too early will disqualify from access to 6.48pps special divi (17.50% of all Net Revenue).Advantages to Prax:A) Prax to receive a producing P6 well and licencesB) Prax to retain all £300m or 90% of tax lossesC) Prax is able to proceed with any acquisitions immediately after the dealD) Prax to keep access to the restricted cash of £45m.E) no need to distribute DCU dividends bi-annually to thousands of ex-Hurricane shareholdersF) no need to distribute 17.50% of all Net Revenues to thousands of ex-Hurricane shareholdersDisadvantages to Prax:A) Prax to pay more upfrontAdvantages to Hur A and Chances:A) Company still listed on the stock exchangeB) Company to remain a producer and will gain access to new wells and licencesC) Company to keep professional links with PraxD) Company to directly receive 17.50% of Hur B Net RevenueE) Buying another producer should make the Hur A share price stronger and return to 2-3p which would represent 40-50m mcap. This is an important and forgotten possible outcome.F) Company can spend £1 and receive £91p back while investing in a new projectG) Company is able to drill in the future using the licenses from the taken over companyH) Any new successful drill adds cash to the bank and increases share price.Disadvantages to Hur A and Risks:A) Hur A to return part of unrestricted funds to own shareholders on the sale dayB) Hur A to lose all or 90% of tax losses and will lose all cash stream immediately on a sale dayC) needs to stay operational after the saleD) Hur A to continue deal with shareholders and their mattersE) Difficulty in finding a suitable company to take overF) Company to be represented in the future by the directors brought from a taken over company.The above numbers of course are for informative purposes, but I am seeing them as realistic, especially if you allow yourselves and us, shareholders, to look proactively for a company to take over. Some additional effort would be required in 2023, but the advantages are greater than risks and worth to explore.Please let me know if you have any questions. Looking forward to hear from you.Kind regards,

[marmar80] 29/3/2023 18:07

It is unfair to force long term holders to accept this plan of delisting a company which is not in any debt. The company should be still active and bosses proactive. If they don't want to fight, the door is open, they should leave. That is my personal opinion.

[rahosi] 29/3/2023 17:21

Could a shareholder write to the Court and ask the Court to instruct the company to be more considerate to PIs with an ISA (or SIP) holding?

How does one obtain the necessary Court contact details?

[dave999dave999] 29/3/2023 16:44

keep an eye on the "share holder meetings" section on the my accounts and dealing page.
In theory HL should be telling us of meetings and offering vote casting


Dave

[fat frank] 29/3/2023 16:09

Thanks kooba - I have also written to HUR asking if they have considered the practicalities of this arrangement for those who hold in SIPP's/ISA's - no reply as yet.

[kooba] 29/3/2023 15:54

If the shares/DCUs are trade-able on any recognised stock exchange then they would be eligible..at the moment the only thing they have mentioned is a matched bargain basis such as JP Jenkins https://jpjenkins.com/I spoke to them and they are not a recognised exchange..so unless they can find a recognised exchange that they can be listed on then its not going to work i don't think.https://www.gov.uk/government/publications/designated-recognised-stock-exchanges-section-1005-income-tax-act-2007/designated-recognised-stock-exchanges-section-1005-income-tax-act-2007-v3What i am unclear on is weather you can hold Hurricane stock in the wrapper to receive the 6.02p tax free that stays there and then take the DCUs out into own name... not ideal but maybe better than just dumping or transferring holding out pre distributions.I was looking at this for a mate ..i do not hold in an isa or sipp myself.

[fat frank] 29/3/2023 15:37

Rahosi: from Hargreave & Lansdown today after asking how this proposed sale would affect my SIPP holding:

'Thank you for your message.

We will confirm more details regarding the proposed scheme of arrangement following the publication by the company of an official circular. We cannot comment on SIPP eligibility before this document is published.

I'm sorry I couldn't have been of more assistance. Should you require anything else, please do not hesitate to contact us.'

So, clear as mud!!!

[steve73] 29/3/2023 12:40

many online brokers charge a significant if you want them to vote on your behalf... not always, but in many situations.. at least mine has (tried) in the past.

[agnabeya] 29/3/2023 12:08

Never having been in this situation before- if PRAX is unlisted- what rules does it operate under.
Also-I take it certificate held shares cannot be traded online in any form?

And my shares will no longer be held in my ISA- at least- that’s how I understood google.

TIA

[wbodger] 29/3/2023 12:02

Wasn't that a problem of you losing the certificate, which is the inherent danger of paper certificates. (Oh, and the difficulty of dealing with a Chinese conglomerate probably in a foreign language!)

Good luck anyway!

To counter that, shares held by a broker in the nominee account require you to trust that the broker's voting of your shares in eg. Schemes of Arrangement will be carried out correctly. For brokers it's a pain in the brass.

Which is relevant if the Prax takeover looks like being a close run thing. Lesson: do vote if you are opposed.

[steve73] 29/3/2023 04:18

FWIW,

I had previously ('09) held some Roc Oil - an Australian listed oil co. in my non-ISA account.

It was then delisted from AIM, and at that time was unable to be held in my UK based online dealing account, so I was sent a paper share certificate to my registered overseas address.

A short while later the co was taken over by a Chinese conglomerate, and paper cheques were sent to all remaining holders, denominated in Aus dollars. Unfortunately my cheque never arrived at my address. I have been unable to contact the co. for a replacement, and have since moved addresses (and lost the original share certificate)... (not to mention the difficulty of cashing a paper AUD cheque in my UK bank would entail)

A lesson perhaps in holding shares in non-listed co's, although the loss was substantially less than my holdings in HUR have achieved.

So those of you wishing to retain your unlisted holdings, be prepared for going back to the dark ages of paper certificates & paper cheques... although things may have progressed over the past decade...?

[rahosi] 28/3/2023 18:08

Re ISA holding. I had a reply from my Broker, XO

Kindly note until the formal details of the offer have been provided we are unable to confirm how the proceeds will be credited to your ISA.

If the proceeds are paid as a dividend by the Company we will credit the ISA with an income payment however if they are issued as a capital payment we will credit the ISA accordingly.

We can confirm that all payments received under the scheme will be credited to the ISA provided the Hurricane shares are held in the ISA at the effective date for the Scheme.

----

which (I think) gives some, but not solid hope that all scheme proceeds, pre & post, will be settled inside the ISA.

COMMENTS PLEASE

[marmar80] 28/3/2023 08:14

htTps://www.heraldscotland.com/business_hq/23414275.shetland-fields-sights-oil-traders-england/

[asimpleinvestor] 27/3/2023 16:21

Any further thoughts on the EPL anybody? I found some things of interest......

“The Financial Times reported that ahead of this, ministers have been holding talks with energy firms about adjusting the windfall tax if oil and gas prices dropped below a certain level.”

Energy firms call for windfall tax to fall with prices

[marmar80] 26/3/2023 13:09

htTps://www.forbes.com/sites/christopherhelman/2023/03/21/oil-is-on-sale-and-buffett-is-buying-should-you/?sh=1a0be33b39c4

[senseman] 26/3/2023 05:30

senseman
RE: Today's FT - quote Today 04:58 LSE - EPL
EPL significance
Logical big picture thinking would help. Rather than micro thinking. This applies to all issues.
The EPL relevance is that HUR & CA cite it as a factor diminishing HUR's value to a buyer. Not whether it actually is.
So, if it IS a factor, any softening of it increases HUR's value to a buyer. And thus should increase bid quantum
If it is NOT a factor, then it has falsely been cited as factor diminishing HUR's value to a buyer. And thus bid quantum should be higher.ie: increase

[kooba] 25/3/2023 19:37

There is certainly a fair bit of ongoing industrial action which i don't think is impacting Hurricane operations directly but might bring some production elsewhere down..i think the company that provides services for BP has reached agreement on wages and work conditions but many others still plan action.https://www.energyvoice.com/oilandgas/north-sea/492301/worley-harbour-energy-strikes/

[marmar80] 25/3/2023 19:08

Hard to say tbh. I think the planned set of strikes is adding pressure to remove that extra 10%, which companies could use towards paying more their hard working employees.