Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Capt Swag,
As Genghis has stated, 'The thrust of my posts is that everything depends on the reservoir.'
That is in the short term the issue/risk for me now, imho.
Can well 6 fund all cash requirements for the next 12 months, given potential water issues?.
I bloody hope so, but we are now hanging on by a thread are we not?
The sooner the new BOD's issue a forward strategic outlook on how value is to be added to the Hurricane story and God knows we deserve one !!!!, the longer the SP will languish at the 2p level.
Genghis - I have no idea what your thrusts are about.. All I can go on is what you write. The issue is that you are one of the posters who can put a coherent argument across - however as such it is important that you are accurate. We all know you could do it if you wanted to. We also all know you like to consider the downside and it is not as if one struggles to find this with hur... and as I have said before I don't have a problem with that - but let's be honest in our posts.
Capt
The thrust of my posts is that everything depends on the reservoir. Currently there is no problem paying the bonds. But we don't know what capex will be required going forward to maintain/increase that, and moreover, we don't know if that production rate can be maintained in the meantime.
Those uncertainties, I suggest, are what is behind the discount on the bonds.
The downside risk is the Petra scnario poste earlier. Upside is that CA have it right, in which case there is likely several bags in the SP.
But no one can know, at this point, which scenario will play out, which is why all those posting hypothetical values based on assumed production/revenues are just that, Hypothetical.
genghis - with all respect that is nonsense. They have enough cash and income from oil production (monthly) to repay the interest on the bonds. Anyone pushing that argument is being very disingenous. If the market thought that the price would be zero.
yes at the moment the maturity of the bonds needs to be considered but that is quite a while away. the market may well have doubts on that - that is understandable but as you say the market is not always right. besides we will know within 2 months
Agree unlikely Chrysaor interested. But the 50% ish discount says the market is not confident that "hur can service debt on bonds". Markets, of course, are not always right.
cant see chrysaor buying the bonds. If they were interested in the company - and there is noindication that they are then the company is cheap enough now at £50m (+ responsibility for debt)
hur can service debt on bonds and they are not due for over 18 months. so buying the bonds would not give access to the company until then. hur plan is to sort out long term production and plan going forward - which is progressing according to last rns
The way 2020 is going i would be more worried on world war 3 or a metorite attack
More likely they would buy the bonds, @ 50% face value. The danger is that if the reservoir disappoints, this could be what's in store...https://www.investorschronicle.co.uk/company-news/2020/10/20/petra-diamonds-hands-itself-over-to-lenders/?utm_campaign=Pure360%20-%20Investment%20Daily%20%5BHTML%5D%20%5BMaster%5D%20tue%20201020&utm_source=emailCampaign&utm_content=&utm_medium=email
You must be taking a close look at this
Producing oil at 14500 barrels a day
Massive tax write offs
Possibility of a bigger player getting Lincoln tie back over the line with the OGA and costs mostly taken care of already
Massive Acreage
Large sum of cash in the bank
Infrastructure in place
Decommissioning costs taken out of the way
A plan to excavate more crude going forward