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Developing a forward plan such as spending $80-$100m on well 8 to produce in 1 years time +, would put the company in a better position regarding a sale, especially as they would be able to reclaim the R&D tax credits@130% of the cost so essentially getting it online for nothing, increasing tax credits to an already burgeoning pot and potentially increasing company turnover/profits. Making the company a two well company increases value and stabilises the company. As a potential acquisition what's not to like.
Better the cash than tax credits
Its a difficult one. CA are obviously the main driver for HUR. They have a self imposed deadline to exit and realistically when hedge funds set a timeline, they tend to stick with it. So 18 months or so from now. Being a hedge fund they are there to make deals. Would they spend $80-$100m on well 8 to produce in 1 years time +, or simply bank the cash every lift and do the ground work for a purchaser to show the potential of the basin and the wider licence. The pressure on larger players to show they are doing something re North Sea investment also helps. I think a beauty parade is already underway and it is just a matter of who and when and how much. I cannot believe that if the BOD was serious about well 8 they would have done the ground work already. HUR is a tidy entity now. I simply can,t see HUR organically growing. Sale sign is up!
When putting a share value on tax credits you have to remember they are reducing with every lifting.
marmar on advfn gets it right - see below. HUR's 2 big sale points in short-medium tern are Well 6 cash cow megawell and tax loss benefits 16p a share.
"23/5/2022
09:40 She has been hired to find a way of utilising the tax losses. In my opinion CA mission here is to put company on sale and main two highlights are the operating well and massive tax losses which buyer can use against profits. Buying Hurricane for anything less than 16p is like a buy for no costs.
marmar80"
appointment must be good if she competent & prioritises HUR - more signs CA paddling away underwater in the background like a good 'un. agm agenda still keenly awaited
Grant Thornton has an appalling reputation.
now with 6 NE Directorships, one wonders how the poor girl finds time to sleep, let alone spend 6 paychecks. running her own company as well...
mergers & acquisitions
https://www.linkedin.com/in/linda-beal-20146543/?originalSubdomain=uk
Kind of confirmation of the course here. Looking for the potential buyer imo.
It’s a good sign that they have taken on a person to specifically take care of the income and tax situation attached to it. This will really come into play once the debt is paid off which I think will be done before the due date in July. If it isn’t done before July it will just mean that there is more money in the bank prior to clearing the debt.
Let's hope this is a Solid Appointment and can Finally Help us to Move forward ??