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I’m invested both in RKH and HBR although it’s disappointing hbr is exiting SL I’m confident a new partner will be found to progress sl project given oil price above $70. I’m happy to see hbr strategy is to operate in a low risk environment so even if oil price drop again business can sustain, HBr is not ideal for small investors or short term investors , it will rise steady and will attract more institutional investors as they start giving dividend. It has solid business model with experienced management, has good assets mix with both oil and gas. Oil and gas demand will be increasing next few years doesn’t matter how much we talk about esg, hate fossil fuel , it will be essential until alternative is available and hbr is in great position to capitalise it being a leading independent uk listed oil and gas co. For me it’s a hold, will keep adding if price stay at this level.
Dyor
Thanks miles44,
Don't worry about contradicting me as that has been for good reasons that you've explained us in your previous post for which I highly recommend anyone who has second thoughts or needs a question answered to email the Harbor Energy investors relations that I'm yet to do and will do for my own peace of mind.
I truly believe what miles44 has posted and I don't doubt what they've said.
On this note, I wish everyone the best for next week and let's pray that last week two days sell off doesn't continue also on Monday as Imo the weekend has allowed the MM's to chill off from playing us like their personal Yo-yo.
Cheers. NoFear.(*__*).PEACE
@epiphany121 and @NoFear I ve been in contact with Harbour Investor Relations several times now. I ve already owned some other oil stocks, e. g. bought Ovintiv April 2020 at 2.2 USD and saw that there management was highly overpayed plus their IR answered to one of my emails and once I started asking something critical (very politely) I never got an answer from them anymore. Thats (!) what I call a non-transparent company. With Harbour it is exactly the contrary. I even got a call from them once after having sent them an email, so sorry @NoFear (once again - dont really like to contradict you twice a day ;) - HBR is not a secretive company and - considering the fact that we are all "unimportant" private investors - very nice, professional, friendly and cool in their IR. I really recommend you all to just write to IR - you ll see what I mean. Also - as @epiphany121 mentioned - Linda and Phil are very transparent - of course always looking for what you really CAN already say about the future. We dont want them to tell the world about the details of any talks with other companies or chat publicly about company secrets as that would of course be damaging Harbour and therefore us as shareholders. All you want is management to do good work, not sink money into projects like Sea Lion, keep a stable balance sheet and you all should remember that Phil and Linda are holding substantial shares in the company with their private money. Substantial (!) shareholdings. Thats always a good thing as they themselves have an interest in making HBR a success story - also for us shareholders :)
Miles - Yes indeed. I don't see the relevance of Sea Lion to Harbour anymore. They've decided to pull out of the project as it's been deemed as not a strategic fit for HBR anymore and that's all that matters. If the required investment in a Greenfield project and the subsequent time taken to see returns on that investment is deemed too long, in the face of the current ESG/Fossil fuel transition narrative, then that is the right call by the BoD. There are, I'm sure, plenty of acquisition alternatives available to Harbour rather than sink in Hundreds of Millions of dollars into a greenfield project like Sea Lion. I think that's the right approach.
I'm not sure I understand the reference to Harbour BoD as a secretive bunch - that's a head scratcher to me. I can't imagine any of Harbour or other listed company BoDs turning up at Poets' corner and give a discourse on company direction/strategy to whoever turns up. I own Enquest too in the UK O&G sector and I get frustrated with them being less transparent than I think Harbour is at least in terms of setting expectations to the market. Even US and Canadian listed companies, as progressive as they are and far more than the UK ones, don't go around discussing operational or strategic initiatives in public.
Hi miles44, all good here and hope just as good too. Of course there would be costs involved in pulling out but I would expect to be just as much Imo some sort of handing over recompense for their 60% stake in the SeaLion oil exploration project that they still have a liability to until their termination contract is up. Why would they give it up for nothing if Novitas wants to be in even more now with Rockhopper? Not Pumping :) (*_*).!
But as you know the Harbour BoD are a very secretive bunch of business people and we're finding more about the ins and outs of the Harbour Oil & Gas operations much thanks to the media news channels, that Linda Cook and BoD don't seem to think we should know or worry about and therefore would prefer to leave the small investors wandering what really what's going on and I rather do all kind of background research and find out all about who they're are in bed with and with they don't no longer want to be as we've seen with Rockhopper. I take their Sea Lion exit as a blessing in disguise. Take Care. NoFear(*__*).
@NoFear with all respect: HBR management was asked during the Q&A if the stop of Sea Lion would cost the company. Linda answered that it’s not yet clear if they d get sth for their stake ir would have to pay indemities, but that it would be more or less negligable = +/- 10 Million GBP.
So HBR will not make a huge sum of money leaving the project.
All cool if you like the company. I m long here as well as you know. But no need to pump :)
Why we need to understand the backgrounds of all that has recently been happening since the Harbour Energy HY results and who were the participants that signed up to the SeaLion Falklands Islands oil exploration projects.
How it all started explain in this article below:
5th March 2021
www.oedigital.com/amp/news/485778-falkand-islands-gov-t-gives-more-time-to-sea-lion-field-partners
Harbour Energy, a company created through the merger of Chrysaor and Premier Oil, has made a decision to exit the Sea Lion oil field development in the Falkland Islands.
The Sea Lion project, with independently audited 2C resources of over 500 million barrels, was discovered in 2010 by Rockhopper, but the project development start-up has been delayed several times. In 2014, Premier Oil – now integrated into Harbour – and Rockhopper targeted first oil for 2019. But the field development has yet to reach a final investment decision, several years later.
Harbour Energy has a 60 percent stake in the oil field while Rockhopper holds the remaining 40 percent stake.
Rockhopper said in a statement that it has held the Sea Lion acreage since 2004 and will continue to pursue the development of Sea Lion regardless of Harbour Energy’s exit.
The company added that it is in discussions with Navitas Petroleum around its potential entry to the Sea Lion project following Harbour's decision not to proceed. Rockhopper notes that Navitas and partners have recently raised project financing in excess of $900 million and taken the final investment decision on the 330-million-barrel deepwater Shenandoah project in the US Gulf of Mexico.
The previously announced heads of terms with Premier Oil and Navitas will expire on 30 September 2021 unless extended by mutual consent before that date. If the heads of terms expire, Harbour will have an initial 90 days to elect how to proceed with their exit.
Rockhopper will continue to be funded – excluding license fees, taxes, and project wind-down costs - by Harbour during that period under previously announced terms.
The company will now work with Harbour and the Falkland Islands Government to ensure an orderly exit by Harbour from the Falkland Islands.
“This represents both a difficult moment for Rockhopper and a huge opportunity. Whilst we are disappointed that Harbour has decided not to proceed with Sea Lion, we remain committed to unlocking its development,” Sam Moody, CEO of Rockhopper, said.
“Navitas’ recent financing on its Shenandoah project demonstrates that funding remains available to independent E&Ps in the international markets for large-scale offshore oil developments and we very much look forward to working with them to progress Sea Lion,” he added.
In a separate statement, Harbour Energy said that it would also be exiting its exploration license interests in the Ceará Basin in Brazil and the Burgos Basin in Mexico.
"While the Sea Lion discovery has significant resource potential, development of the project is not deemed a strategic fit for Harbour. Therefore, the group has decided to explore the options to exit the project and its other license interests in the Falkland Islands," Harbour stated.
https://www.google.com/amp/s/www.rigzone.com/news/rockhopper_to_go_ahead_with_sea_lion_project_despite_harbour_exit-23-sep-2021-166514-article/%3famp
Hi Laidback. A good afternoon to all my fellow long investors that believe Harbour is about to become the next multi million pounds success headline story as Drax has as of now.
[Soaring electricity prices could add £500m to value of energy firm Drax]
25th September 2021
https://amp.theguardian.com/business/2021/sep/25/soaring-electricity-prices-could-add-500m-to-value-of-energy-firm-drax
Also, moreover on Harbour Tolmount. The North Sea is where all the oil and gas action its to be found now and nobody wants to be stuck with an oil and gas exploration in the Falkland Islands, [SeaLion] with constant threats of Argentinian political and military intervention that could have attacked their infrastructure with sabotage. Linda Cook would rather avoid any political or military escalation.
As it stands Harbour as until 30 September 2021 to renew the mutual agreement to stay in with the Sea Lion or walk away. Moreover, according to the article below cited, Harbour has 90 days to prepare and handover their exit potentially sell their SeaLion 60% stake for a large amount of money to another explorer who will continue with Rockhopper side by side. Anyhow, it was Rockhopper that were the first to make the oil discovery at the SeaLion. On past Thursday, the Rockhopper share dropped massively on the Harbor SeaLion exit. Read the full facts here:
23rd September 2021 Harbour exit from SeaLion
www.rigzone.com/news/rockhopper_to_go_ahead_with_sea_lion_project_despite_harbour_exit-23-sep-2021-166514-article/%3famp
[Rockhopper confirms that it is in discussions with Navitas Petroleum LP ("Navitas") around its potential entry to the Sea Lion project following Harbour's decision not to proceed. Rockhopper notes that Navitas and partners have recently raised project financing in excess of $900 million and taken final investment decision on the 330 million barrel deep water Shenandoah project in the US Gulf of Mexico.
23rd September 2021
https://rockhopperexploration.co.uk/2021/09/sea-lion-update/
@buzzthomas - poor hedging: true. Nothing exciting on the horizon.... Tolmount probably coming online adding lots of unhedged production... not exciting? :)
Plus with 2022 production only around 53% hedged as stated here several times already...
Plus current share prices beaten down
So dont take me wrong: you re right with your hedges... but compared to a lot of other producers I find the perspectives exciting enough :)
exactly, @laidback
I personally liked the last posts of @epiphany121 a lot. He´s shown with his other investments that he´s spot on with energy investments and has decided to enter Harbour at current prices. He also said and I think the same that short term - maybe till end of October (?) we might see prices going down even further with the huge stock overhang flowing into the market.
But definitely in 6 months or a year many will think back and regret not having bought (more) shares when it was "summer sale 2021" :)
HBR **** poor hedging and 15% field depletion rate. Nothing exciting on the horizon and will soon have to do another merger or similar. IMO
This s is possible when Tolmount is on line at current oil and gas prices imo
Just have faith here
DYOR