George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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MaverickD,
Hedges are insurance against the price of oil. They are not insurance against production of oil.
"ummm think you should do a bit of research on what they have in place".
I always do my research and happy to be corrected.
Slift.
A total of 1.8 MMbbls, or c.10,000 bopd, has been hedged through the purchase of put options with an average strike price of $35/bbl. The average strike price of $35/bbl represents a floor for the hedged volumes of 1.8 MMbbls, with the Company retaining any upside in oil prices above this level. The cost of acquiring the put options was $3.4 million.
@Slift - ummm think you should do a bit of research on what they have in place. Hedges yes totally get them as many would have seen me quote the positions relating to TLW
MaverickD,
"they have options set on 10k, so its not like zero production."
??
I don't think you understand what hedges are.
If HUR don't produce, they don't get hedge receipts.
Slift.
@Slift - they have options set on 10k, so its not like zero production. The 2nd well is being eased back in with the use of ESPs and production will be optimised.
Keepwell,
Can't compare debt, some debt are manageable.
When debt is manageable, it's good and does no harm.
HUR's debt can be managed, but there's a much high risk.
As you say: "it's practically a whole years worth of production"
And that's the risk. Right now, production is in question. Oil price is also depressed.
If HUR really do get stabilised production, then all good news.
Slift.
The debt is important and can't be disregarded, it's practically a whole years worth of production. Give or take.
Any equity is at risk while the debt remains.
You can't compare this debt to others either, it's not apples and apples here.
BTFATH1,
You're the idiot that said Tullow had 7B debt.
You don't even know the difference between liabilities and debt lol.
Debt not an issue here - it genuinely isn't. Crikey I wonder what some would say about my PMO and TLW holdings - please don't start on those boards.
With any debt (ours due in July 2022 I should point out) is for $230m https://www.hurricaneenergy.com/investors/convertible-bond
Production at 15k now with an additional well at Lancaster slated for 2021 and oil now is $43.
Anyone thinking oil will remain at circa $40 for the next 2 years shouldn't be investing in any oil stocks lol.
Hopefully some get the point I am making.
Someone talking some sense....
Our debt for a producer is tiny...
So cheap it’s just plain silly, but for some it would seem not cheap enough.
Roll on next production update and Lincoln Crestal news
Rockrose had 1.1 billion of liabilities including cash - crikey
Had of 1.4 billion in liabilities and net assets of 150 million and sold for double.
We have net assets of 700 million and a market cap of 115 million with next to no debt taking into consideration cash in the bank.
Bonkers