Hurricane Energy Share Discussion Threads

[diversification] 08/5/2017 13:56

Rynac, work it out yourself, your a vertran poster on here with nothing else better to do so crack on.

[pcok] 08/5/2017 13:48

I take your points jacks13.

As a holder of a reasonable number I do expect to be able to participate in any discounted raise so the no pre-emptive proviso is something I hope will not apply to a more general raise in which we can all participate.

[idleduck] 08/5/2017 13:44

Curious that Malcy has not rushed out a commentary
Perhaps he's ruminating!!!

[thegreatgeraldo] 08/5/2017 13:43

It may seem pedantic, but capital cost to first oil is suggested at around the $400 mill mark (not £400 mill as in an earlier post). The bulk of that is to be spent on the FPSO & some of it has already been raised to cover long lead time plumbing kit.

Obviously the FPSO is being leased & needs to be fit for purpose to operate WoS. I can't help thinking of the current craze in the UK for car leasing..... You wouldn't expect a car leasing company to offer you a car with a knackered engine & gearbox, then ask you to front up several grand to make the car fit for purpose at the same time as signing a lease agreement.

[mirabeau] 08/5/2017 13:25

F1

That's normal fella. There's no conspiracy at work. It's just the software making a judgement call

[f1araway] 08/5/2017 13:21

Yet AGAIN my purchase of HUR is shown as a sell.

[jacks13] 08/5/2017 13:21

PCOK, The share issue authority will be exercisable for twelve months (June 2018) and appears to me to be the equity contribution to the eps. It could be for other purposes, but a management incentive scheme? Not at this time surely.

Alistair Stobie said in a Vox podcast (17 Jan) that he expected the company to tap the market for a small amount of EPS funding in h2 2017, via an equity placing. He intimated the balance of the approximately $400m required is likely to be raised via a combination of debt and a farmout.


(7min)

[rayrac] 08/5/2017 13:21

Mind you...I'd like it to break out...of anything💥
28591;🏽€640;🔨㈐4;

[rayrac] 08/5/2017 13:17

It's been in longer trading ranges than 3day, so what the heck has your statement got that's special?

[diversification] 08/5/2017 13:08

This is currently within a 3 day trading range which I expect it to break out of as soon as this afternoon

[buffythebuffoon] 08/5/2017 13:08

I imagine there are many that don't even realise the CPR doesn't include P2308.

The numbers will get bigger and bigger, but it's currently unclear how we are going to monetise the assets. Obviously the CPR for P1368 is the first step. With the GLA CPR by January, things should develop. What will we hear in the meantime? Funding for the CPR, and possibly for a poke or two into our other assets?

Buffy

[pcok] 08/5/2017 12:55

60m a drop in the ocean. Say we get 50p per share = £30m. We need @ £400m.

These may be institution bound OR management share incentive scheme. The truth is though the EPS will have a different funding structure. Indeed AS told us this in the last vox interview. He was also very confident of arranging the necessary.

[jacks13] 08/5/2017 12:19

Yes, the 60m new share authority, with no pre-emption rights, points to institutional placing(s).

[davidblack] 08/5/2017 12:11

No need to sell anything and end up paying corporation tax and stamp duty.


There are a line of investors unable to find a drop of oil for themselves who will happily fund us up for the big lift and if the deal is struck right keep us out of the hands of cheap predators.

Yep there will be a bit of an equity raise for the EPS but my guess is it will be a 1 for 10 with the bulk of the raise bringing in institutions. We really don't need any spare stock ending up in retail hands. What we need is for any retail demand to push the stock higher and ease CA out of their oversized position.

We need it kept tight if we want to maximise our upside.

[buffythebuffoon] 08/5/2017 11:54

As regards private investors in the O&G market, I get the impression they are much more short term in their outlook.

I guess people think they can come out, go into others with activity in the near term and then re-enter Hurricane later. They may well be right of course.

In order to do any more work on our other assets we'll need money from somewhere. Will we sell GLA and use the money to develop our other supergiant? The market just doesn't know.

Buffy

[thegreatgeraldo] 08/5/2017 11:22

Obvious question to RPS, "What happens to the 77.5% of oil that is apparently not recoverable?" Does it go away somewhere? ;-#)))

[adam] 08/5/2017 10:58

So if dilution 25%(assuming 50p ish cash call) on capital raise then we have 1.5b shares. Say $2b mcap at £1. Seems a good starter given we would still own 100% and heading towards production at that point.

[davidblack] 08/5/2017 10:48

I get the feeling that a few short term shorters have turned up this morning?

Excellent if they have. That extra buying from them will mop up CA sales as we gently head north towards 75p in the coming weeks.

Oh and the CPR was great they just clipped 12% of the Company's own estimate which is fine.

And for those who think we now have half a billion at Lancaster just think what another couple of drill holes will do for that number in due course? Just on Lancaster.

Oh and the drop was quite modest to which bodes well.

[tournesol] 08/5/2017 10:45

adam

it's still 62 million if the EPS = 10 yrs

read the detail

[davidblack] 08/5/2017 10:39

Toffeman it's an independent report required to give a competent third party.

[leeson31] 08/5/2017 10:39

toffeeman, the only difference is the RF from 25pc to 22.5pc. Dr trice has mentioned this is a floating variable which could possibly actualy rise to 40pc RF ! theres a min 2.3billion barrels in lancaster, the Rf is the floating variable as to how much can be recovered. consider halifax which is about 2x bigger than lancaster, then consider lincoln which is joined to warwick ((aka GWA) which is about the same size as GLA, then youll see theres about 10billion barrels.... would it matter if only 22.5pc was recoverable? i think the cpr is being conservative too by using 22.5pc RF, and if the expert on the matter dr trice reckons this could be a lot higher, then idd say hes probably correct. this is hugely discounted to actual NAV....

for now, by way of CPR validation, we have just lancaster, at 2.3minimum billion barrels. is use $1/b per oip, thats $2.3b valuation just for lancaster.

youre looking at $10b valuation.

the CPR for reast of assets will be towards year end...........

[adam] 08/5/2017 10:32

What happened to the EPS reserves? Presumably that is the bit they can raise finance on given well stock. ISTR it was over 60m.

[toffeeman] 08/5/2017 10:30

Please could someone explain why a BoD would commission a CPR which did not agree with their internal assessment?