Hurricane Energy Share Discussion Threads

[fat frank] 26/1/2024 10:40

"senseman 25 Jan '24 - 10:58 - 37894 of 37899

P8 is not being drilled"

Don't want P8 to be drilled now. There simply isn't enough time to obtain permissions, secure a rig, drill and complete the well, test and tie back to FPSO and then to produce enough oil to get back drilling costs before DCU's expire.

That ship has sailed

IMO

[ifaze] 25/1/2024 18:28

Nice one Senseman,

[simonanthrobus] 25/1/2024 12:36

"HUR are currently involved in NO negotiations to buy any oil or gas production assets which will increase the DCU payments. "



Simply a lie. If you ring Prax and speak to them they will tell you different

[bill hunt] 25/1/2024 11:27

Edit. thank you and CA not Va.

[bill hunt] 25/1/2024 11:26

Than you, Senseman for all of your efforts. The defeat of the attempt by bond holders was largely down to you and CA. However, it was a pity that VA were "forced" to accept the Prax offer. Again, thank you.

[senseman] 25/1/2024 10:58

From Senseman LSE:
RE: DCU/OFFLOAD INFO/HELP NEEDED URGENT Today 09:58
Have been told by reliable source that DCU 17% share of each offload @ at $78/80 oil = 7 million (I assume dollars).

Which divided by 2 billion shares = circa .3p per offload. Does this sound about right?

Also that by end 2026 we are likely to see under 10p total (ie nowhere near 12.5p).

Doing the sums - assuming production doesn't crash crash so offload each 3 months

2023(2) + 2024(4) + 2025(4) + 2026(4) = 14 offload total x .3p = 4.2p

6.02p initial payment + 4.2p = 10.42p

BUT, even if production doesn't crash crash but rather depletes more gradually as we hope, it must lessen to some degree - so knock 1p off (could be more). I expect P6 to be economic beyond 2026 but we will get none of that.

We would need $100 oil for long periods between now & end 2026 to get within striking distance of 12.5p.

There have been 2 good articles published past few days - one Bloomberg saying oil should have $12 supply disruption risk added to current price because of risk greater middle east conflict. Another saying signs of China finally waking up again following strong government measures. problem is - can't copy and paste openable links on here nowadays. I do not see oil staying at $80 - has been minor miracle stayed so low for so long.

HUR are currently involved in NO negotiations to buy any oil or gas production assets which will increase the DCU payments. Nor, if they do enter any, will they likely be completed before end 2026 and producing cashflow

P8 is not being drilled

Ergo, as things stand we are looking at circa 9.5p total. Which will only improve with significant higher oil price

[briggs1209] 24/1/2024 05:54

thank you senseman, your efforts are appreciated by the silent majority.

[senseman] 24/1/2024 01:02

Simon
Magic is referring to the 2021 95% dilution restructuring attempt which failed (I call it HUR 1). At the start of the 3 day High Court hearing the shares were 0.6p. Had the attempt succeeded, 95% dilution would have rendered the shares worthless, ie: toilet tissue, and bondholders would have owned the company. For 4 months I worked full time to, along with CA, stop the attempt, whilst knowing I was endangering myself financially as Covid had killed dead my self employed income stream as an athletics coach, and I knew I should have been developing a new income stream. I did what I did because the old adage 'If not me, then whom?' quickly became apparent. HUR 1 was THE crucial episode/timespan
You are referring to the successful sale of the company to Prax (I call it HUR 2). Most of us knew fighting it was, bar a miracle, likely to fail. But with so much at stake, and after so much effort in 2021, a small group of us could not sleep at night unless we at least tried. And I would make 2 points:-
1. The DCU payments represent 17% of HUR's Well P6's profits. Prax retain 83%. Given our initial 6.02p payment + 6.48p payments are capped at 12.5p max (which we will not achieve before the end 2026 cut-off end date because there is no sign of Prax/HUR acquiring other production assets to increase profits from which our 17% is derived, or of drilling well P8 to do similar), consider what the share price would now be if HUR 2 had failed and a still shareholder owned HUR was banking 100% of well P6's profits?. I repeat - just 17% of profits caps us at 12.5p. How far above a 12.5p share price would we be now be if a still shareholder owned HUR was banking 100% of P6 profits?
2. No one, bar the 3 of us who as shareholders attended the Sanctioning Hearing when the judge OK'd the sale, and stood and spoke in the 'barrister's section' against HUR's KC & Prax's QC, will ever understand how close we came to succeeding. The only thing which failed us was the lack of a shedload of expensive independent expert reports to back up our arguments, in the face of HUR & Prax's +£1 million quid's worth of legal preparation and 'expert opinion'. The judge (and all attending, including both KC & QC) knew it was a stitch up. But the judge effectively declared that despite misgivings, he had no option but to be guided by the +£1million quid's worth of 'expert opinion' He did have another option, but was not brave enough to exercise it in our favour.
I am fighting for financial survival on account of my HUR efforts - which is why until now has not allowed me the time to become au fait with the DCU minutia - but which now makes it imperative that I do. That is why I have reached for a quick handle re how much we can expect going forward, and when.
Magic - thanks for kind words

[rethemagic] 23/1/2024 21:49

You have no idea how much work senseman did behind
the scenes during the takeover.On top of that grow
up will you.

[senseman] 23/1/2024 18:58

LSE Senseman
DCU/OFFLOAD INFO/HELP NEEDED URGENT Today 18:55
I would be most grateful if someone might help me. I need promptly to get a handle on

(i) what offloads we've had so far since Prax (eg month and offload number). And when offloads expected (ie which months) 2024 & 2025.

(ii) how much per DCU payment do we expect, and when will be paid

(iii) how much (approx) per DCU each offload is worth

Been necessarily consumed with other matters so if anyone could help me get a clear picture quickly and and save me a read around would help much. Thanks

[simonanthrobus] 12/1/2024 10:14

I am surprised Prax haven't made any bolt on producing acquisitions to utilise the HUR tax losses yet

[laserdisc] 12/1/2024 10:10

Pay dates are
31st March and 30th September each year with the final payment being 31st March 2027

Subject to Lancaster still produces they promised a cap of 6.48p at the start

[blackburnrover] 11/1/2024 19:35

Sorry I'm not up to speed with this, how many payments will we get out of this now ?

[ifaze] 11/1/2024 12:16

Thanks David
That is what I was expecting would happen, but nice to read something confirming it.

[laserdisc] 11/1/2024 11:12

NOV PRODUCTION 6870 per day per o/g website (7000 september)
PRAX GROUP Offshore 202311 11 November 2023 27,275.09 32,743.20 6.87

SAY 80 days
Gives 20th March 24 estimated date next tanker offload



EDIT ON 17/2. PER OG website update DEC production 6720

[laserdisc] 06/1/2024 10:58

Thanks Dave, Good to know they think any money gained on the Dcu's will land directly in the Isa & they seem to think it always will. Will review this on next payment thanks again for posting.
Offload has been completed this morning as i post . Debatable whether its going to be included in next payment, initial offload Altera Wave commenced prior to 31/12 but weather delayed completion till after that date

[dave999dave999] 05/1/2024 17:02

I spoke to HL about my DCUs
just a service desk guy but someone who seemed to know enough about HUR "Oh yes... them, popular topic" he said.

I had been investing the payout without spotting it arriving and was querying where the last payment had gone, so got the full run down by way of explaining that i had indeed been paid and was just looking in the wrong place

The DCUs can't be held in an ISA because HMRC rules dictate that it must be stocks and shares and a DCU is not one of those.
but any money gained from them does not pass through my "taxable" stocks and share account. It lands directly in my ISA and they seem to think it always will.

my view of what HL said is

The FORCED sale, due to takeover, of my ISA-purchased HUR shares, now has a delayed payment back into my ISA, much the same as any other sale or take over, just delayed piecemeal over 3 years.
but they needed an official account to hold the certificates for me as a customer, they couldn't modify the ISA account due to the rules so they just stuck them against the next best thing.

The other account is just a holder for the DCU certificates which have no value recorded against them, cost nothing with no purchase cost against them, and make no money with no dividend or income against them...they are just a note that illustrates i am owed delayed payment for my shares.

i'm being paid an unknown value for my shares over 3 years with an obvious minimum and potential maximum value per share, i got more than the minimum and i don't know if i'll get the maximum

still dunno where I stand but if its paid into my ISA its in my ISA

HMRC appear to have decided that they would not go about changing rules and lots
of documentation, to cover off what appears to be a pretty unique circumstance. just to allow the DCUs in an ISA

hence we are where we are

my payments are just income from shares in my ISA. Next time some comes in i'll see if its treated as dividend or cash but either way the whole point of an ISA is that it doesn't make my tax return any more complicated.

from the horse's mouth HMRC

"If you complete a tax return, you do not need to declare any ISA interest, income or capital gains on it."

I believe this is income into my ISA...from my DCUs

that is a perfectly reasonable assumption based in HMRCs definition, and they don't tend to be too nasty to people who make reasonable assumptions provided they back it up with a reasonable logical argument. The sentence from HMRC covers that as far as i can tell.

if it was being paid into my personal current account, direct from PRAX, alongside my wages from my proper job. It would look like payment for services rendered, extra earnings above and alongside my PAYE job, then i'd be liable for tax on it

its not my fault that i ended up with DCUs, i had no choice, i didn't ask for DCUs to conspire to avoid paying tax.
If they had just paid out 1xp for the shares in the first place no need for discussion

just my view i could be wrong your tax affairs will differ from mine :)

if you purchased DCUs ,,,well that different


Dave

[laserdisc] 05/1/2024 08:26

revised upwards for offload Altera Wind now 534846 should be doing offload to terminal, port wilhelmshaven this morning

[laserdisc] 05/1/2024 08:26

revised upwards for offload Altera Wind now 534846
edit offload timings
started WILHELMSHAVEN (UTC +1)

2024-01-05 10:36 MyT UTC estimate departure 6/01/24 @10.30am

[laserdisc] 03/1/2024 16:38

As i read it it will be paid on the next due date in 2027 ie 31 March 2027
depends on what is shown in Hurricane accounts at the date 31/12/26, in previous accounts they have recorded stock of oil at close of business not offloaded on AM
see document on prax website I
more info here
3.1.2 immediately following payment of the Deferred Payment due and payable (if any) on the
Payment Date falling on 31 March 2027 or, if no such payment is due and payable, 00:00
GMT on 1 April 2027,
such date being the "Expiry Date".

we will have to see nearer the time 1/4/2027 that is the expiry date, if dcu;s have not fully paid out 6.48p.
They do have this vision to progress the upstream business so will have to see what unfolds on that front as it is a major part of full payment at this time

[porrohmahnn] 03/1/2024 04:09

What happens to the final DCU payment if the AM has, lets say, 450,000 barrels on board but not offloaded on 31 Dec 2026? Will the final DCU payment include the value of the oil produced but not yet offloaded or does Prax get to keep all of the value of this?

[laserdisc] 02/1/2024 14:03

unable to confirm that this is actually going to be recognised in the March payment we will have to see what unfolds on this
poster on LSE says Prax are basing the DCU calculation on "Revenues received...on a cash basis" in the period ending 31/12

Also not sure yet how HMRC will deal with these payments now they have been trf out from ISA'S
The traps which arise in practice can include HMRC assess the deferred consideration to income tax rather than capital gains tax.

Happy new year and good health to all on this thread