Hurricane Energy Share Discussion Threads

[kooba] 25/4/2023 09:33

I’m not sure you get it at all..you are confusing your net and gross even after i have explained it..we are getting over 50% of the net by getting 17.5% of the gross..if you want 30% of the net..you are asking for less money..i don’t think that is going the right way!! happy with my numbers so will leave at that.
The fact is they are not going to change the deal however much you stamp your feet..i don’t think they need to…nor do they it seems.
Only hope is an 11th hour firm offer from 3rd party that board can support..or this is voted down and we are back to square one same management with long wind down.

[marmar80] 25/4/2023 08:43

This way we could gain almost twice from P6 well. This deal should not be constructed this way to give them p6 and money to maintain it so it is a risk free investment. Prax will get sweet 300m in tax losses and if they use them, and they will do for sure, they will save a lot of money instantly. We all also forgetting how much money has Hurricane spent on developing the field, on drilling, testing area around. All of this comes as a top up to Prax for how much really? 0.83p cash consideration :)

[marmar80] 25/4/2023 07:57

I haven't said 50% of gross revenues. I said 30% of net revenues. We would be getting that and Prax instead of keeping 82.5% NET would keep 70% net.

[soilderboy] 25/4/2023 07:45

Will ALL payments be made through your normal broker account, or will you have to apply directly to the company. Does anyone know how this will work?

[kooba] 25/4/2023 05:31

Probably because getting over half the clear profit out with no liabilities was seen as fair ..but yeah why not 50% of gross revenues so Prax lose money every offload..why not.Because I suppose you want it to to be remotely attractive to keep the well running.

[marmar80] 24/4/2023 22:54

I take that 17.50% will be redistributed between DXU holders after all the costs and if this is the case I am wondering why not 20 or 30% goes to us? Any ideas?

[kooba] 24/4/2023 21:28

I explained it well enough I thought. We are not giving them 82.5% of anything, for a start 8% gross goes out to Bluewater before Prax gets anything anyway but lets run some numbers to demonstrate what our gross share of production , with no production no maintenance and no admin costs against our share represents.

Expected cash production costs(2)
o 2023 Expected cash production costs (excluding 8% incentive tariff)(3): $45.5 - 54.7/bbl

So let’s take an offload of 500k at $80 pb( net of BP costs) =$40m
Therefore 17.5% of gross revenues $7m goes to DCU pool.

Now if one nets that same scenario down down with costs as Prax have to,
Take off 8% gross bluewater incentive leaves $36.8m
Cash production cost say $50 bbl on 500k bbl that’s $25m
That leaves $11.8m net net before any G&A costs.so 50% of that is less than $6m.
Obviously the DCUs do not pay maintenance and repairs if let’s say a pump needs repairs its down to Prax however they will continue sharing once fix done. They also share no risk in decommissioning cost overruns.

But just on the fixed numbers given DCUs get more than half the net net revenue from well6.

Happy for that to be challenged but no point in talking apples a pears in gross and net income.

[marmar80] 24/4/2023 20:51

Arenr we giving them 82.50% cash for repairs?

[kooba] 24/4/2023 20:11

I wonder what the share of net revenues is likely to be..at the moment I guess more than 50% from P6..that % figure will rise as production declines and fixed costs eat into profits, depending on oil price of course. One shouldn't ignore Prax covers all production costs including any repair works required and other potential liabilities , don't think things sound as bad when that's pointed out. I would take 17.5% gross revenues over 50% net revenues any day with oil where it is and cost per barrel pre A&G rising.

[marmar80] 24/4/2023 19:01

*Correct me if this is incorrect*On a sale date Hurricane shareholders will get 6.02p:A) 5.19p paid by Hurricane from own resources B) 0.83p Cash Consideration paid by Prax.After sale date ex-Hurricane shareholders will get 17.50% net revenue from P6 well:2023 - 0.27p in September2024 - 1.21p split in two2025 - 1.13p split in two2026 - 0.35p split in twoAfter sale date Prax will keep 82.50% of net revenue generated by P6 well. There is also a promise of sharing with us 17.50% of any other future net revenues generated by end of 2026, subject to 6.48p cap.Wondering why there is a cap of 6.48p and why Prax is going to keep 82.50% of net revenue from p6 well. Probably too late to ask.

[marmar80] 24/4/2023 16:41

LFD, maybe, their office is not far

[senseman] 24/4/2023 16:17

Unlikely though anything's possible in a murky world.

Stifel were prominent 18 April. A line of 5 grey suits, 3-4 from Stifel and 1-2 from Dentons. Stifel very vocal, interjecting & 'explaining' much with determined vigour. VERY concerned how meeting went.
Mr Stifel collared me with cup of coffee first name terms immediately afterwards & seriously bent my ear how good Scheme was - I was tired and daft enough to listen though would not budge from opining history stopped most PIs from believing anything HUR said or believing CEO & CFO belonged behind bars. I left with the impression they were ringmasters squaring many circles and definitely fretting. He did have the grace to chuckle when I said Stifel were making millions plus a likely fat success bonus and could hardly be termed independent.
Clock tick tocking as kooba says

[lfdkmp] 24/4/2023 15:09

Is it beyond the realms of possibility that Prax had some previous "ad-hoc" connection?

[wbodger] 24/4/2023 15:09

(Yeah kooba, that is my point: if Prax tabled something that CRS opposed they needn't bother. Same with Kerogen, although Kerogen's 15% is not mathematically terminal by itself.)

The Companies Act 2006 must be what explains the No Increase Statement in the RNS to the effect that there must not be any variation in Firm Proceeds plus Supplementary Dividend plus Deferred Compensation. There was a suggestion that in the Q&As Prax seemed to be edging towards defining the 1.87 pence as Deferred Compensation. Good to have that knocked on the head.

[dunkirk1016] 24/4/2023 14:24

I am bitter but made up my losses here elsewhere. The RNSs today are nothing short of corruption, I hope Marris and co rot in hell as how on earth have they been good for the shareholder.

[kooba] 24/4/2023 13:09

CRS could have blocked this and Kerogen as good as blocked it individually , the irrevocables were there because they would not have tabled anything firm without them agreeing and didn't want any horse trading after going public i guess..and this was the best offer. Still not impossible that someone spoils the party but the clock is ticking .

[wbodger] 24/4/2023 12:36

Re #37361 Stifel also advised Wentworth, and they did exactly the same thing, in the week before the Scheme Meeting the Offeror stated they weren't going to increase it That was an unpopular Scheme and it very nearly failed the 75% test, even with irrevocable undertakings from major shareholders of 22%.

Stifel's advice seems to be "get IUs from institutions and don't worry about private investors". Not sure that's good advice although it might work here, because CA and Kerogen have 44%. This Offer is unpopular because of the DCUs and if the Scheme fails a more straightforward bid might win. (But not by Prax because of "Under Rule 35.1 of the Code, if the Acquisition lapses, except with the consent of the Panel, Prax will not be able to make an offer for Hurricane for at least 12 months.")

Interesting to me is that CA's 29% is a rock solid blocking stake because most bids nowadays are by SoA. (It's mathematically impossible to get a Scheme approved if the 29% holder is opposed. They're not going to abstain!)

[kooba] 24/4/2023 10:05

Thanks laser so should expect the supplementary dividend to be paid along with cash and transaction dividend early June if this does go through. So the full 6.02pThe board of Hurricane will declare a further Special Dividend, the Supplementary Dividend, of up to 1.87 pence per share (£37.2 million), at any point before the Scheme Effective Date, and conditional on the Scheme becoming Effective. For the Directors to be able to declare the Supplementary Dividend in full, Hurricane will need to have sufficient cash resources and profits available for distribution, in particular it will need to have received the proceeds, as planned, from the oil lifting from the Lancaster Field scheduled for late April 2023 (the "April Lifting Payment").

[laserdisc] 24/4/2023 08:39

2023-04-26 Weds offload Tanker Altera Wind

[senseman] 24/4/2023 08:32

kooba - thanks. Can anyone explain the NTSB changing the metric from 300 to 360psi (or the other way round) issue? It may have considerable import.

[kooba] 24/4/2023 07:39

Re psi ..Not my strong suit! ..seems rather technical on production limitation..could well mean that that change potentially freed up more reserves..but not the rate of production as the water cut continues to increase. My understanding from the revised CPR was that the expected economic limit at around $80 was August 2025 even with this data and reserve estimate included.I haven't seen reference to production extending beyond that in any communication i am aware of.

[janekane] 24/4/2023 07:30

A rather threateningly missive today vote for us or we walk
I hope the answer by the majority of stakeholders is


DO ONE THEN

[oilretire] 24/4/2023 07:29

Wonder why they felt the need to release thishtTps://www.investegate.co.uk/prax-explrtn---38--prod./rns/no-increase-statement/202304240700091949X/

[senseman] 23/4/2023 20:55

kooba
are you able to explain the P6 production metric changed by the NSTA from 300 to 360psi (or the other way round)I cited in one of Maris's reply to NTSA relationship question - see below. I know it's important as it extends things but I know how important - my gut says very. Am sure other non-techies would appreciate.
"HUR CEO Maris seized question. Answer – HUR excellent NSTA relationship. Also, (astonishing not RNS’d(my comment)) NSTA some wks/months ago gave permission for crucial P6 production metric to be changed from 300 to 360psi (or other way around - techies please explain). This has enabled & explains why P6 reserves? have been upgraded to extend P6 commercial life & barrelage to 2026 (again techies, please explain the 300/360psi metric & import)"