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What would have been a better process by this useless board was to pay 50% of the CB holders debt and make that conditional on the maturity date to be extended by another 3 years
Since the CB holders have been receiving 7.5% interest in the last 4 years and still another year to come the 50% payment would mean they will get over 85% of their money back and by committing only 15% at risk for another 3 years given that they will receive another 3 years of 7.5% pa of interest on the 50% still owed they will have very little to lose even if things turn for worst
This way the company will only have to commit 115 million by next year and use the money earned for the next 12 months to carry on work overs and in process increase the production and even access additional resources to bring to more production
And if things go to plan and the production is increased to 16/17000 boo/ day they can even pay the rest of the CB holders debt earlier than in 3 years
Now would’t any decent BOD at least would have considered such reasonable option and put that to the CB holders, knowing that even if the company was to fold there would be sufficient tangible assets to for the CB holders to get most of the remaining debt back?
This is what is called forward thinking and pure robust management
Something this BOD have lacked from day one but very good at deceits and scams
Please vote to get them out, they have proved they are not there to protect shareholders value and as such have no right to remain and draw far salaries
It’s all in our own hands now we are the owners of this company not these scammers and incompetent lot
It would appear to be a prima facia case the Bondholders are in a far better position from a risk Maturity repayment perspective then they have ever been since the Bond was issued. Additionally, the implied risk is ameliorated by the high coupon rate, and every payment of this has been made in full and on-time. Can’t see any reason to be concerned given the amount of oil recovery and the rising return at the current Brent price.
Don’t Panic! Keep Calm and Carry On!..................With a new BoD of course!
Yes mirasol,we need to oayback $230mil.
As per last year report, we had $120mil cash ,that means we need to arrange $110mil more.
So after 31st december,our cash position is getting more and more stronger and i believe as our calculation from 1st of jan to 31st dec 2021,we will have 90mil more cash(lets say 70mil??)
Means we need to arrange only $30-40mil.
Hope you understand??
Mirasol
US$230 million
"Means300000*300= 90,000,000!!! Profit a year!!!!"
they have to pay back over £ 200mm in about a years time...................
Direemblem.
$35 cost and if oil average $65 then $30 straight profit.
Which will be 300k a day with 10kbopd.
And say produced only 300 day in a year.
Means300000*300= 90,000,000!!! Profit a year!!!!
Lol.
NGR1616, stop ramping mate.
This is not going to £0.50.
Yes between £0.05-£0.10 is possible.
JonesRichard, I agree 0.50p is possible.
50 ****ing pence ,,,, what is wrong with this complete tool aaaaarrrrrggggghhhhhh
Yes, would love to think that 50p + will be seen very quickly post July 5th (presuming the BOD don't resign before then) guess it could take a good few months, then again if the price of oil continues to rise then who knows how high the sp could go and how quickly here!
Seen people predicting oil to rise to $150 + this year at some point!
hasiba,
Well said , someone here mentioned that the cost of production is max 22$ per Burrell which means on a daily production of 10000 Burrell there will be a over 500000$ daily free cash flow
Multiply that to say 300 days in a year allowing for shut downs maintenance etc will give over 150 million $ of free cash add the 140 million already in the bank will make over 290 Million $ of free cask
Pay the 230M$ loan off leaves over 60 for work over and increase production to say 15-16000 Burrell per day
With price of oil going towards 80$ this company will have cash coming out out of its ears
So all and all these figures prove the depth of the scam this BOD are trying to achieve
I am sure the judge will also see these figures and will reject the scam once and for all
The next step is to vote these scammers out and install decent , caring and honest BOARD to put the company’s shareholders interest first and move this company to its potential value which in my honest opinion is north of 50P to start with
what is next here??
court hearing on 21st.
court can not force us to pay the bond holders right now because we are still 1 year away from maturity dates!!
so court will not sanction the restructuring as we live in democracy and owners of the company(share holders) are ready to pay when the payment dates arrives.
after court hearing what is next??
THE BIG DAY WHEN WE WILL BE KICKING THE BOD OUT!!
new BOD will arrive!
negotiation will start with bond holders!
if bond holders agreed for extension then fine if not we will have to arrange the remaining 30-40mil (230topay-(120cash in hand+profit made in 2021)).
with oil is above pre pandemic levels right now and 10kbopd producing we will have plenty options for that cash arrangements.
aimo.
Alavib…totally agree and I can’t believe the high court will agree to sanction the restructuring plans . We will see those corrupt BoD kicked out after 05/07/2021 …if not resigning before then,
The BoD are now in a very different and difficult positions from when they cooked their dirty trick plans when oil price was very low in comparison to the current with bullish tilt.
If the court allow the sanction to go a head ..it would not only reflect on HUR but all the market confidence will be shaken…and how anyone would invest and trust any company with CB in their finance books in the future ,when BoD will be allowed to rob the shareholders to collude with CB holders to keep their jobs!!
IMO…the BoD would fail in their plans …
As always dyor
I do hope that the Jude on June 21 hearing will take into account that since the first hearing the POO has risen by over 8$ per Burrell, meaning HUR even more solvent than before and this POO is set to hit 80$ by end of current year but maybe even more
Even at current level HUR will have made enough free cash by July 22 to easily pay off the CB holders loan so why on earth they still insist on such stupid idea of winding the company down if their scam is rejected by court is beyond any reasonable sound argument
Which I am sure both CA and now hopefully the judge in the case next week must have seen and taken into consideration for their response
The BOD now have no where to run they have been brutally exposed and it is like a day light that what they are trying to achieve is not short of corporate piracy and they will be held responsible for their so stupid action thinking they can use some company law to leave shareholders out of their scam and get it over the line
But it all backfired and now with the POO going up every day they are even more screwed
Would also accelerate watercut as a result of increasing rate of decline of BHP ofcourse.
Yep pure pish
utter drivel
"Submersible pumps are used in oil production to provide a relatively efficient form of "artificial lift", able to operate across a broad range of flow rates and depths.[3][4] By decreasing the pressure at the bottom of the well (by lowering bottom-hole flowing pressure, or increasing drawdown), significantly more oil can be produced from the well when compared with natural production.
The pumps are typically electrically powered, referred to as Electrical Submersible Pumps (ESP)"
Without an ESP the flow rate will not be guaranteed and will tail off without it, especially in this case at Lancaster.
They may struggle to produce enough oil to meet the minimum monthly lifting requirements at AM without an operating ESP so in my view it's a potentially serious situation if they can't get it back up and running.
“ the Company has decided to maintain the P6 well on natural flow at a rate of 9,000 - 11,000 bopd”
The ESP is for reliability and efficiency to maintain the lifting of moderate to high volume fluid..
Ok, fair enough. .. so that then leads to the next question.......why is there such a small difference between esp off and on. Doesn't make sense to me...
Greenmachine
"While these investigations continue and ahead of an attempt to restart the P6 well ESP, the Company has decided to maintain the P6 well on natural flow at a rate of 9,000 - 11,000 bopd "
Note "bopd" does not include water.
They stated that it was “bopd”.
Barrels of OIL Per Day, not Barrels Per Day.
On first reading of Fridays end that was my first thought..... the flowrate was higher than I thought possible. However, the flowrate maybe doesn't differentiate between oil and water. They perhaps have given the total flow and not oil....
Mirasol
They have been producing at around 11000 bpod since the end of last year and they can get 9000 to 11000 under natural flow so having the ESP offline is not an absolute disaster. They only started using them in June last year because of flow irregularities, and not to increase production. My understanding of the RNS is that turning on the ESP is not the primary issue. They are looking at the reason why it was tripped off.