Harbour Energy Share Discussion Threads

[marvin9] 04/2/2017 20:25

Been a really nice sunny day today m mm mmmmmmmmmmmm!

[marvin9] 04/2/2017 20:24

You know what.............. You can all kiss my shiny Black Asssssssss !

[leoneobull] 04/2/2017 20:01

It is an ordeal that lasted the better part of a year, and ended in the early hours of Friday morning with a final deal to reset its $2.8bn of debt. "It is not unusual for amajor refinancing to take a long time," says Premier Oil chief executive Tony Durrant. It is no doubt a refrain he has been forced to repeat countless times since the summer. "They are complicated beasts and involve three-foot high wodges of documentation and a lot of lawyers. It's always difficult to get a syndicate of banks into the same place and particularly hard if you have multiple classes of creditors," he says. The sheer scale and complexity of Premier's lending syndicate has ensured the collective will reboot the oil explorer but has also meant it is not a financial lifeline that has been easily agreed.  "There is a very large room at Allen and Overy which has been exclusively handed over to this process for the last nine months. The people who live in that room – and they mostly have been living in that room – are people from seven of our 25 banks. Inevitably there are two or three people from each bank; they have their advisers and their lawyers, and independent experts. On an average Thursday afternoon, which is when the committee formally meets, there are at least 40 people in a room. This is just one committee," Durrant says.A meeting with all 25 banks, together with private placement noteholders and advisers from the US and Asia, required Allen and Overy's theatre to hold more than 100 people."I'm not complaining about it. The fact that we put together a syndicate of this size to give access to over $4bn means we never found ourselves in the position where we needed to raise money. But it does make life difficult in terms of getting people into a room," Durrant adds.Leading the oil explorer has been far from a smooth ride. Durrant stepped up to the helm of the mid-cap oil company in June 2014, just months before oil prices tipped into an 18-month free fall. The precipice gave way to historic market lows which would stand as the backdrop to Premier's own downturn.I don't think anyone expected a two-and-a-half-year downturn which was as sharp and deep as we hadTony Durrant"Did we think that the oil price was a bit 'toppy'? Probably," says Durrant of his first months in the role. "But I don't think anyone expected a two-and-a-half-year downturn which was as sharp and deep as we had."Premier's real troubles began with a North Sea bargain. It was this time last year that Durrant swooped on the UK North Sea assets of German energy giant Eon in a deal worth $120m. "I think the maximum point of frustration was identifying the Eon acquisition, recognising that could be a very good thing for us to do, but also realising that it would be extremely difficult to get it through while prices were at the bottom of the market," says Durrant. "To have got to the try-line and then face the prospect of not being able to execute that deal was very frustrating. That was my personal low point."In a different environment we might have issued equity to finance the Eon acquisition, but we didn't because it was a horrible market at a horrible time. And so we financed with debt. The quid pro quo of that was this negotiation with the banks," he says.?Chief executive of Premier Oil, Tony Durrant CREDIT:GEOFF PUGHPremier's $2.6bn debt dwarfed its market capitalisation of £314m, leaving the company unable to pass its financial covenant tests. Talks rumbled on through each successive covenant test waiver."We were grateful for their support at the time. It wasn't easy for them when oil was at $30 a barrel. But it's been a painful process," says Durrant. The deal to kick-start Premier has been stalled by complex negotiations, inter-creditor disputes and a lack of urgency on the part of its banks."We've been negotiating hard to get the best deal for the company as a whole, including the shareholders. "We had a huge range of haggle points and if we had wanted to wrap up the talks earlier we would have had to give way on those points," he says.I'm making it sound like it's all been appalling and very hard work. But really the end justifies the means because we'll end up with a total refinancing of the company, no maturities until 2021 and the full $4bn of facilities reconfirmedTony DurrantPremier had expected to agree a full-scale financial deal in September, but the process dragged on."I'm making it sound like it's all been appalling and very hard work. But really the end justifies the means because we'll end up with a total refinancing of the company, no maturities until 2021 and the full $4bn of facilities reconfirmed," he says.In the meantime, the company has been inching forward with projects in a portfolio of an estimated 700m barrels of oil and is set to build on record production of 80,000 barrels of oil a day last year."There's a lot in the portfolio to chase and most of it is very good stuff," says Durrant. "That's the fun part for Premier going forward – deciding which of these projects to do, when to do them, how to fund them. It's all growth potential."Premier's Catcher field is on track to reach first oil later this year and should add 25,000 barrels a day of tax-free cash flows to help with debt reduction and reinvestment into new projects. The next project is the Tolmount field bought from Eon.Further afield, Premier is looking ahead to a production boom from a swath of high-quality, low-cost projects which have been overlooked amid the noise of its refinancing saga. Its Sealion field in the Falklands, which is capable of bringing in 100,000 barrels of oil a day, could be on stream by 2021. Premier's portfolio also includes a 100m barrel discovery in Indonesia and a 25pc stake in a 300m barrel prospect in the Gulf of Mexico. "For a different company in a different environment a 300m barrel prospect in shallow water – that would be front and centre of everyone's attention," he says. One can imagine Premier's London office filled with the pop and cheer of champagne bottles being opened."There might have to be some of that," Durrant replies wearily. He insists he is pleased at the prospect of ending the painful nine-month ordeal, but it is clear he would rather discuss the next phase of Premier's growth."Once you can see the light at the end of the tunnel it suddenly seems quite exciting."

[oilretire] 04/2/2017 19:49

Good article, giving an idea of the scale of the task involved.

So easy for some to post cheap shot comments on a PBB thinking that the process should have been a flick of a switch.

[oilretire] 04/2/2017 19:42

Ooops, pipped me to it Leoneo

[marvin9] 04/2/2017 19:22

Awwwwwwwwwwwww Blesssssssssssssssssssss!



Not sure I agree with the comment regarding the share price increase?????? It crashed from well over £5
150pc: The share price increase in the 12 months to February 3
.....................................................................................................................................................................




Then who spoils the party... yea you got it ... IRAN!

htTTps://news.am/eng/news/371513.html

TRUMP IS THE MAN... GET SANCTIONS BACK IN PLACE... IRAN ARE A PAIN IN THE ASS

[hearts1] 04/2/2017 13:13

I don't think BOD changes will make much impact now. Catcher is the short/ medium term priority - if that is on time and fully operational it will drive the share price Hopefully some of these asset sales and farm ins are concluded near term.

[frightened city] 04/2/2017 11:09

You're probably right but that's what this board has failed to do, under weak leadership.
What is the point of them being there?

[hearts1] 04/2/2017 11:00

I think it's a good thing that the banks have a say on capex, looking after the balance sheet should be first priority, most oil companies have not , some survived others have gone bust.PMO was near, it can't happen again.

[manics] 04/2/2017 10:05

The Times article suggests (some) analysts aren't keen on the prospect of the lending group having sanction on projects that future growth might be reliant on.

Too convoluted perhaps? You might understand that position given what PMO's just been through to get financing 'signed off' -can we expect similar each time a new strategical opportunity presents itself?

The Premier talking heads themselves sound bullish to me. The working dynamics with the lending group won't be / can't be known for years -unless a few deals or points of progression sail through painlessly so extending confidence toward these new relationships.

Meanwhile, it's all kicking off in Iran...

[steve73] 04/2/2017 09:28

leone.. if you look also at Tullow's SoL..
Jun - Dec: 11.56%, 14.81, 18.7, 20.89, 20.89, 23.65, 22.63.

Their restructuring was during early July, in which they offered convertibles with the price set during the coming week (thereby INVITING massive shorting). As you can see the shorts did increase from Jun to Jul - but continued for the next few months, only dropping slightly in Dec. Currently almost 1/4 of their stock is out on loan.... which seems crazy to me.

FWIW, Enquest share price only really increased sharply AFTER their refinancing was completed (followed by OPEC's decision to cut back).

I think PMO's share price will not materially change until our restructure is COMPLETED, which is still a few months away... A great opportunity to add whilst you can IMO.

[frightened city] 04/2/2017 08:39

It's wrong to blame Durrant, he and Rose have been doing their best to stabilise the company.
Vote against the chairman at the AGM.

[frightened city] 04/2/2017 08:32

The banks/debt holders now have the sort of control more normal with private equity.
The board now has no function and cutting them back would be a nice cost saving. Especially the chairman should resign having presided over this handover of power and responsibility. But he won't, there's a nice sinecure there....

[leoneobull] 04/2/2017 07:19

Onedb iiiSo I quickly took a look at PMOs' stock on loan and another 2 oillies. Last three months for PMO Dec 77.42m shares ie 16.02%Nov 58.8m or 12.17% Oct 33m or 6.84% Enquest Dec 74.1m or 6.62% Nov 85.5m or 9.4% ( new shares were admitted ) Oct 84.2m or 10.64% Ithaca Dec 4.2m 1.46%Nov 3.9m or 1.35% Oct 3.7m or 1.52% So whilst I am still waiting on the Jan data. We see how short Interest on Ithaca is near negligible . Enquest's is coming down , but PMO was rising . The beauty is when PMO's shorts will start to fall . The above 0.5% disclosure last I checked today was at 6.21 so quite a lot is sub 0.5% We will see if on Monday the bigger shorters have started to close as today was the the first time since I have been following Premier that I saw so many institutional side trades. I am super confident they were closing positions out . When Enquest announced its refinancing deal on the 21st of Nov 2016 the share price closed at 28.25 . Even had a day low of 23p . It took the market 6 days to digest the deal and together with the Dec OPEC deal it surged to a top of 56p . Today around 46.5p. On TA the 50 and 200sma are bullish for PMO . RSI scratched 50 today but did not cross that level. We did not even test support . (80/81) Lets see where we go next week

[leoneobull] 04/2/2017 06:50

Sloan said a few months ago that PMO could soluble to 126p or higher upon refinancing. Then she downgrades us when we have massive uncertainty resolved for five years. Clearly an agenda. Good weekend all!

[gary38] 03/2/2017 21:23

Hurricane Energy and EnQuest among the few 'buys' left in oil sector - MacquarieShare 11:33 03 Feb 2017"Hurricane offers 82%+ upside to our target price from the current share price, and has the clearest near-term tangible value creation opportunities, in our view.oil platformValuations in the oil sector have caught upIt is harder work picking winners in the oil and gas sector now that crude prices have steadied and share prices have climbed, so says Macquarie.Kate Sloan, analyst at Macquarie, most share prices are close to fair value and as a result many in the sector have been downgraded.Cairn Energy PLC (LON:CNE), Faroe Petroleum plc (LON:FPM), Ithaca Energy Plc (LON:IAE), Premier Oil PLC (LON:PMO) and Tullow Oil plc (LON:TLW) are all relegated to a 'neutral' rating.Three of Macquarie's 'top picks' retain their 'buy' recommendations; Hurricane Energy Plc (LON:HUR), EnQuest Plc (LON:ENQ) and Africa Oil Corp (TSE:AOI).Of the three, Hurricane Energy is deemed to have the clearest value opportunities."Hurricane offers 82%+ upside to our target price from the current share price, and has the clearest near-term tangible value creation opportunities, in our view."Further exploratory drilling (ongoing) and progress on the Lancaster development could add significant value, building on the success the company enjoyed in 2016."Macquarie has a 90p price target for Hurricane (current price: 51.25p).EnQuest, meanwhile, is Macquarie's pick for further oil price leverage combined with low risk project progression."Although the rest of the sector now reflects a much higher discounted oil price than it did four months ago, EnQuest is still discounting US$63/bbl, the same number it was back in August 2016," Sloan said."We believe the valuation gap will be narrowed in the coming months once the market starts to believe in Kraken delivery."Macquarie has a 79p target price for EnQuest (current price: 46.34p).Sloan added that Africa Oil's has very attractive upside through de-risking the discoveries in Kenya's South Lokichar basin, where it partners Tullow.

[squiresquire] 03/2/2017 21:16

LEONE

Thanks , nice post for weekend.