Hurricane Energy Share Discussion Threads

[laserdisc] 25/9/2023 08:26

Luckygit, Shares no longer listed on AIM he should have received cash settlement for the shares in the ISA around 21st June . DCU's were also issued as part of deal, share provider will have now trf & credited DCU'S to a trading account well thats what happened to me
Lancaster is still producing & this morning a flight went out to AM via Prax upstream

I would expect an offload to a tanker in the next 14 days despite annual maintenance schedule, will update tanker offloading as and when. The dcu's could possibly pay up further to 6.48p max over the next 3 years depends on events at Lancaster and if Prax utilise the hur tax losses in a Prax north sea oil acquisition

the details were
Under the Scheme, UK Holders will be entitled to receive in respect of each Scheme Share held at the
Scheme Record Time:
• the Transaction Dividend of 3.32 pence per share in cash (£66.1 million); and
• the Cash Consideration of 0.83 pence per share in cash (£16.5 million).
In addition, each UK Holder will be entitled to receive:
• the Supplementary Dividend of up to 1.87 pence per share in cash (£37.2 million); and
• a Deferred Consideration Unit, which may deliver up to 6.48 pence per share in cash
(£129.1 million), plus an amount of cash from Prax equivalent to such amount of the
Supplementary Dividend Amount (if any) which is not resolved to be paid as a dividend prior


At this point in time we are awaiting for an update on the DCU payment i believe an update is due 6 monthly 1st on 30 th Sept, any payment received on the DCU relates to a capital element of the sale of Hurricane shares . CGT could arise on the amount , its not a dividend see page 81 of documentation that is concensus of opinion following discussion over on the LSE thread where there are some good posts on this matter

[luckygit] 23/9/2023 16:28

I have a friend who bought a few Hurricane shares about 4 or 5 years ago in an ISA. He has asked for advice on what he should do but I'm not at all sure. Any idea on what he should do? Seems a bit complicated to me.

[laserdisc] 19/9/2023 13:18

thanks JakNife for clarification of the tax treatment, I will have another read as it says its complex , i note this para Deferred Consideration Cash Amount
This amount will be known on the Effective Date but it will be contingent on the Trigger
Event. If the amount is paid as the Deferred Consideration Cash Amount, it will not be a
dividend for tax purposes. It will instead be additional contingent consideration for
Hurricane Shares.
A UK Holder will be treated as making a part disposal of Hurricane Shares on the Effective
Date and the consideration for the disposal is the known amount

i hold class 2 DCU so if we get a dcu payment end of this month will it be treated same it will not be a
dividend for tax purposes but it will affect only the CGT aspect on sale of hurricane shares

Section B on page 81 does say it will be treated as capital

[jaknife] 19/9/2023 11:52

laserdisc,

Those rules only apply to US investors:



I would have thought that most investors in HUR are UK tax resident?

Page 79 of the Scheme Document sets out the UK tax treatment of the DCUs and can be found here:



The taxation treatment of payments under the DCUs is not straightforward and depends on whether holders converted their DCUs into Loan Notes.

JakNife

[laserdisc] 19/9/2023 10:46

should be end of month see latest posts over on LSE .

I copy this from bocase as a reminder THANKS BOCASE
Further to my post 37704 above, I have been doing some research and fortunately if you have held the HUR shares for more than 60 days prior to the ex div date, the dividend we have received will be classed as 'qualified dividends' and are not taxed as income but as capital gains or losses. That is a big relief!!I did not fancy a tax bill on an additional £20k of taxable income.

see below:

Dividends are separated into two classes by the IRS, ordinary and qualified. A dividend is considered to be qualified if you have held a stock for more than 60 days in the 121-day period that began 60 days before the ex-dividend date.
2
It is an ordinary dividend if you purchase it after the ex-dividend date.

ANYONE KNOW could this rule now apply to interest payments from the DCU;s if we do receive any interest in this tax year. All the dcu's have been trf out of isa's into trading accounts in this tax year 23/24

[rahosi] 15/9/2023 12:56

Does anyone have an idea when the first DCU payment will be made (My guess is this Sep 30)? Will there be an announcement and an 'Ex date' like a regular dividend?

[laserdisc] 12/9/2023 07:54

We know DCU Holders will benefit from the exposure to Prax’s future UK North Sea growth aspirations.

Yesterday Prax announced a new $300M Facility which will be used to refinance the maturing five-year term loan tranche from 2018, as well as for strategic acquisitions.

Lets hope some of facility is for a North sea acquisition a so they can use up some of Hurricane's tax losses

[senseman] 07/9/2023 18:38

Laser - Do keep on eye on those aspects if able, and post when appropriate. Though boards quiet, more than a few of us will monitor, and not just for intellectual curiosity. Any skullduggery re accounting, production & DCUs may reopen a door, especially if CA are batting straight and have not done a DCU deal with Prax. Regards

[laserdisc] 06/9/2023 19:13

next uplift should be around 1st October (subject to maintenance ops)) which will run for 2 weeks i est.
Prax have had proceeds for 1 offload in July, not sure of actual date of DCU interest payment i would have thought by 10th October, then they can incorporate proceeds of proposed October lift. Otherwise we wait for Prax to issue 2023 annual results and see what figs for P6 well have been incorporated in their accounts

[janekane] 06/9/2023 18:24

When do we get another payment

[laserdisc] 06/9/2023 15:33

the original hurricane takeover presentation was previously on their website there was an audio to convince shareholders the best deal was chosen, i don.t think its avail now, i kept a copy of their figures, these figs were shown in presentation at $80 oil . So as long as Lancaster continues production

Returns to Shareholders for 2023 2024 2025 2026 expected
Prax Offer FOR THE
(Lancaster Revenue Only) was 6.29p 1.21p 1.13p 0.35p in addition if prax use the tax losses they obtained from Hur then we should expect more

the more Brent rises Above $80 the better for holders of dcu's as the Lancaster revenue when above $80 should be pure profit , all overheads production costs etc have been covered in above figures when it was calculated at $80

last sat supply boat attended AM just the norm with supplies

[senseman] 06/9/2023 15:10

Courtesy of Senseman LSE

BRENT $89/$90 Today 16:08
Current situation

1) HMRC ruled DCU’s not retainable in ISA, thus taxable. Considerable loss to most PIs. A flawed decision. But what PI can fight HMRC?

2) Tories announce 100+ new N. Sea/ Shetland licences to be issued. Prax to revisit P8? And utilise other Lancaster resources? Tories blinked first - Labour will not reverse licences decision.

3) World oil consumption new high. OPEC+ extends production cutbacks till end 2023. Overdue supply crunch begins to bite. IEA revise POO estimates upwards. Standard Chartered & others forecast $90 Brent 2023 Q3, continuing through 2024 with $100 being visited.

4) P6 continues problem free. Brent today $89-$90. HUR/ Prax P6 standalone figures set to be proved fairy tale by Xmas.

[wbodger] 05/9/2023 14:55

Hmmm. I think to get 6.48 Prax have to invest in their Hurricane division. My numbers don't work for 6.48 by end-2026.

Imagine if they could buy Shell's interest in Buzzard (22%, which came over with their BG acquisition, and must have been written off now). CNS, oil could be tankered to Humber refinery, priority access because Prax own it. And Shell might accept payment from Prax's entitlement from Buzzard. That also uses the Hurricane tax credits.

[fat frank] 05/9/2023 14:23

If we are to receive the 6.48p maximum over the 3 years it has to be 1.08p per half year

[wbodger] 05/9/2023 14:13

As a Crystal Amber holder I would like to hope it is that high, but I have been working on the illustrative figure Prax issued before the EGM, quoted in laserdisc's #37754 above: about .27 pence. Quarter of a penny per half-year.

Where do you get 1.08 pence from?

[rahosi] 05/9/2023 08:29

Ballpark figure for cash flow purposes. What is reasonable to expect as DCU income, twice a year? 1.08p?

[rahosi] 18/8/2023 09:48

Interesting. I already have an account with XO / Jarvis, where our DCUs reside.

To deal in the DCUs the Prax site says:-
Trading with JP Jenkins Traditional

To trade in these shares, please instruct your existing broker or directly place an order through sharedealactive.co.uk. JP Jenkins regularly trade ordinary shares of each company listed, but of course some are more liquid than others.

The sharedealactive site says
Have any questions?

Email us: [e-mail]
Call us on: 01892 700800
Write to us:

shareDeal active
Jarvis Investment Management Ltd
78 Mount Ephraim
Tunbridge Wells
Kent TN4 8BS

Which is the same as XO !

However for me to buy more of the DCUs, I would have to do it through ShareDealActive rather than XO.

[wbodger] 11/8/2023 18:09

I think most people who have DCUs are going to hang on and trust the process. Prax have good business reasons to keep to their plan, and keep Lancaster going.

[laserdisc] 11/8/2023 16:01

Thanks wbodger seems so.All my dcu 's prev in my ISA have now been moved to a trading account by iii. Next payment expected late Sept 1st week October should be around 0.027p per dcu .

[wbodger] 10/8/2023 21:02

laser, re 37742, check out LSE Chat board page 2, poster Kever posted on 18/7 at 17:36 that he had an order for two million DCUs. "No takers" then, but perhaps one million three days later?

[senseman] 10/8/2023 16:11

some perhaps useful dcu and tax comment over on lse after 6 weeks of it principally being occupied by the usual negative suspects

[senseman] 10/8/2023 09:24

jacks - much appreciated. spot on

[jacks13] 10/8/2023 07:52

at bottom of screen;

Field Production Data, PPR (WGS84) select: 'Options'
from the drop-down menu select: Filter

A dialogue box will then appear, select: 'Add expression'

In the left-hand drop-down box select: 'Field name (String)'

Then in the third box type in Lancaster and click 'OK'

The data for Lancaster will appear

to download the data;

Select 'Options' again and choose 'Export all to CSV'

[senseman] 09/8/2023 21:07

jacks - can you give me a pointer on how to find hurricane via the link you posted? doesn't seem very user friendly. much appreciated

[senseman] 09/8/2023 14:16

Courtesy senseman LSE
RE: REFLECTIONS Today 15:15
And for the record - neither details nor evidence was ever provided of the purported '7.8p unsolicited offer' rejected by HUR which provided the justifying rational for the Formal Sale Process to be instigated. Given the absence of such (without good reason), I have no faith that any such offer was received. Alternatively, that if one was, it was a bogus bid instigated by agreement with another party in order to provide justification for an FPS to be conducted.