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I doubt it tbh, unless ofcourse the Bondholders/BOD(or new BOD) come up with a more attractive FWP to recover the the oil that's left.
Also note that the current BOD even suggest that NFA is best course of action for maximum bondholder returns.
I suppose the only other thing I can think of is maybe acquiring other nearby licenses and using the existing infrastructure (AM) to produce.
But here's he limits to that.. marked in black:
https://gyazo.com/3d2e93ac7070c6965383e946835aec3b
Well the proof will be in what the bondholders decide if/when they own the company.if they start doing plans then we were sold short by the co. If they wind it down then that will be telling as well.
I am not up to date on all. The figures as I don't have the time for a cpany I am not invested in..was there any mileage in cutting out spirit and going it alone for Lincoln? I know they already have some of the long lead items
CaptainSwag,
There is no arguing that in the targetted FB reservoir (7z and 6), there isn't much oil left. The OWC is shallower and is proof of this. The only oil left in the FB is between well 6 toe and the attic.
Well P8 will be targetting the remainder of FB oil which well 6 cannot produce and victory sand, which when combined with a water injector (which will be drilled in the victory sand), could produce help produce all the oil within the victory sands too.
So basically.. in FB there isn't much oil left, and majority of the oil that's left is within the victory sandstones.
Unless you have evidence of there being more commercial oil in FB.. but production data doesn't give it.
Sorry predictive text. Slift
Slight - if that was the only forward plan option and that was defo the oil in place then no it wouldn't make sense. But was it?
CaptainSwag,
Well P8 cost: $60m
Well P8 reserves: 1.6m barrels
Assuming Brent stays at $65 between now and May 2022... and assuming all in costs to the company is $40/barrel..
1,600,000 barrels * (65-40) = $40m
Would you invest $60m for the company's FWP when all they've receive back from that investment is $40m? Might aswell give money away to charity lol.
AdmiralSwag ;-)
“ translator - i think they should have made the plan back in september and then tried to raise the finance. i feel they could have tried both CA and Kerogen a”
They probably did, but we don’t actually know. The simple fact is that only Kerogen has the scale to help in that regard...the amount of financial muscle needed to either guarantee the loan, or inject fresh equity was in the order of upper 10’s to 100mm+ dollars. (Putting aside the cost of this and the risk premium it would attract) CA are a £100mm fund, I suspect they at best could have rustled up some single figure millions, without breaching their own investment limits. So what would CA have brought to the table .. nothing material or helpful. Throughout this Kerogen have been quiet and not as far as we can tell a seller...why not? If the company had engaged with them they would have been insiders so unable to trade ...
That could be the explanation or it may not be.
If you have a mountain to shift you don’t talk to the guy with a shovel and a wheelbarrow, you talk to a civil engineering company with the right kit....
RNS - your post sums it up very well. With all the ramping and talk about CA coming to the rescue or the judge at court deciding on the day not to do their job and approve the plan I'm surprised this isn't back to 2p already! Think I'll let the SP do the talking...
translator - i think they should have made the plan back in september and then tried to raise the finance. i feel they could have tried both CA and Kerogen and even an open offer to existing shareholders or even bidstack - even if the bond holders wre not interested. would have been huge dilution but not a giveaway. With drill plans for this spring/summer the big picture could have possibly been a lot different.
“ NO visible forward plan was ever in place AT ALL based on which HUR could have gone to various financial institutions in today's ultra low interest rate environment (or even shareholders) to chase funding, and on CBs,”
HUR cannot as a matter of law speak to individual investors on material price sensitive matters without them agreeing to become insiders. any shareholder communication or “soundings” if they happened will have been done through their advisor and/or brokers. This may not have happened to CA but it may have happened to kerogen..we simply don’t know. The broker will advise the company in the ability to raise fresh equity... and that almost certainly will have happened..although we don’t know for a fact.
Wrt debt (I presume that’s what you mean when you say low interest rates) they cannot borrow more money without bondholders consent...that is a fact...
If they could find someone to lend them $230mm then they could have asked the bondholders to depart and replace it with the new debt...I’m sure the holders would have been delighted to walk away with all that was owed. I think the reality is that the new asset base, the reliance on a single well with an esp simply means it’s not financially capable of taking on that level of debt.
I share many folks view that the BoD were asleep at the wheel before the realisation the ship was holed below the waterline...as the Captain told them it’s not an iceberg it just perched ice...
Once that happened their ability to rescue the situation was limited... bondholders effectively took control..once you cannot demonstrate a reasonable case for how the debt could be repaid...incompetence yes, deliberate criminal fraud or a board led scam with all those advisors and lawyers - no chance.
FatSam82,
"there is NO DOUBT that HUR BoD is now likely the most incompetent and possibly Corrupt BoD in AIM index today"
Those are very strong words. However I personally feel that many (myself included) would agree with you, despite the number of payed-lackeys who post here or bottom-feeding daytraderswho would have it otherwise.
I've got a printout of the so-called CPR on my table, beside me, which I occasionally look at again. Likewise, the 'proposed financial restructuring'.
If a British court of law allows such a scam to go through, I'll walk 400 yards down to the river, jump in, and drown myself.
FatSam82,
Thank you for your interesting post at 12:17.
I can only hope that the 'virtual court' will take all the questions you have presented into consideration, along with others which may potentially be raised by some major shareholders.
I fear that little PI's (such as myself) will have little or no say in the matter, nor any influence in the judgement as to whether the 'financial restructuring' may proceed as proposed by the BoD. But kicking up a lot of noise before the case comes to court won't do any harm.
“ The bod will be asked to why they did not they consider dialogues with the shareholders whom they (bod) have duties to serve their interests ?, ” so you know for a fact that they did not consider this?
“ and what did they (bod) do to promote the successful progress of the company?” that is a question not a statement of fact
“ Why didn’t they buy back the CB at less than its half value when it was very appropriate to do so and avoid this catastrophic scenario?” They did consider this as stated by CA, but under the Covenants they were not allowed to buy back the Bonds..
RosieNas,
"As I've said before much of the legal case will revolve around whether HURR is doomed to be insolvent "
Precisely. And this is why shareholders should be kicking up a big a storm as they can, right now.
The company is NOT currently insolvent. Also, (or at least one hopes) it has maintained its interest payments to bondholders, so they shouldn't have any complaints for the present.
The BoD have come up with a couple of crazy ideas such as a water-injector well and a sidetrack of 7z which they think might 'cure the problems of the field', which is nevertheless producing around 10,500 bopd right now. Which doesn't sound like 'doomsday' to me.
Furthermore, they've said that a rig has been contracted to P&A Lincoln this year, a well which on DST flowed at more than 5000 bopd, and for which the tieback equipment has already been purchased. But instead, for some unknown reason, no.
And where is the RNS about a rig contract ?
It stinks to high heaven. It's no longer a matter of money for me, even if it'll cost, maybe. I want the truth. Hopefully, so will the judge. If he or she considers themselves worthy of such a title.
“None of the above were considered by bod...“
How do you know if that is a true statement of fact or is it just your own supposition?
FatSam...thank you for updating us and your constant constructive support and contributions.
The bod will be asked to why they did not they consider dialogues with the shareholders whom they (bod) have duties to serve their interests ?, and what did they (bod) do to promote the successful progress of the company?
Why didn’t they buy back the CB at less than its half value when it was very appropriate to do so and avoid this catastrophic scenario?
None of the above were considered by bod...
AM was brought in to handover Hur to the Bondholders and ditch the shareholders....they never worked to progress this company into success but exactly the opposite was done to destroy the shareholders value on every opportunity even with the current bullish high oil price and 11,600 bpd production with big cash piles in the bank....
Yes they are corrupt and not fit for purpose and worked to destroy shareholders value...they failed to execute their duties towards their shareholders...
Folks:
If you want to know what the rules and legal precedents are you should look here. Harbottles are not involved in HUR so are not part of the “scam”
https://www.harbottle.com/business-law-update-directors-financial-distress/
Note in particular this comment:” In seeking to satisfy this duty, the directors should have regard to a number of factors, including the likely consequences of any decision in the long term, the interests of its employees and the need to maintain high standards of business conduct.
This duty applies to all decisions made by directors and not merely formal decisions made by the whole board.
However, where a company is insolvent, or is close to insolvency, the directors’ duty to the company and its shareholders shifts to act in the best interests of the creditors of the company. This means that directors cannot, for example, repay shareholders’ debts or make any distributions to shareholders in such circumstances without the proper provision for each of the creditors.“
Of course you should read the full Article for context.
tux and british - i am right behind you in your efforts to bring the bod to face the anger of existing shareholders. i think you are doing the right thing.
i just say how i see it unfortunately
CaptSwag,
"I think you overestimate the impact this is going to have in the press etc. i believe it will just go down as hur failing and that was it. Apart from shareholders who lost a lot of money - nobody will care."
I have to admit, you may have a good point there. In that there is a good proportion of the population who are in debt, or have no savings, have no money, and couldn't give a monkey's about some shareholders losing money. Probably consider anyone holding shares in an oil company as being some sort of fat-cat rich person. So don't give a damn about what happens with Hurricane !
I can accept that completely.
Nevertheless, those who are actually in the boxing-ring or close to it might take notice. Why do you think I bought back in, even if I'm showing a 40% 'paper loss' right now? It's what's known as 'skin in the game', lending some credence.
Some people will care.
British,
"AdoubleUK, you are strong at words, please do write to the media."
Thanks for the compliment, but I try to be 'guarded' as well. I've already written to the FT, however. The thing being, I don't want to make any correspondence seem like 'another dumb punter loses out on an idiotic share' post. This is not SXX, it's not 'donate your money to flood-ravaged Atlantis'. There's something in the background. So no sudden moves, yet.
Hi Rosie, this was the reply i received from Richard Bernstein. The email address is rb@crystalamber.com
''Regarding an EGM, even if we had written to Hurricane Energy calling for this on 30 April, the timelines before the meeting could take place would mean that by the time a vote would be taken, bondholders would hold 95% of the shares and the votes. As I wrote on Tuesday, planning is essential. You should not draw any conclusion from the fact that you have not yet seen us announce a legal challenge. There are several areas that we are currently investigating. We have to be thorough and ensure that if we are able to restore shareholder value, it is done in the best possible way.
We are unable to give any guarantees other than that if it is possible to recover value, we will.''
British is entirely correct. All one can do is try. Often all that is needed is one 'dog with a bone' reporter or regulatory agent to get their teeth into an issue, for it be placed squarely in public domain. And if all efforts come to naught, one feels a whole lot better knowing one at least tried. No courage, no grunt work.... no success. If a writing task seems daunting remember - write one email which can be copied to all
Just did a search and there's some stuff on the news just now about Hurricane Energy and the risk it poses to North Georgia as we enter into Hurricane season. Good work guys, keep up the efforts as it's clearly working.
Remember here is not China, you can not do what you want to do, whether you are rich or not. Remember the general public in the UK is protected by laws. Remember you bunch of scummers are not powerful enough to get free meals forever. Apart from media, please write to your local MPs.
British newspapers would shut their mouths unless you bunch of scummers pay them enough, will scummers like free meals pay them?
tuxedo -
if the bod has said this is the only way forward -unless the judge is given a suitable option i cant see what else he is going to do. I suspect this is the stumbling block CA will face. Do they have time to come up with something else?
the other question is would you want this bod in charge of doing anything else other than winding the company down? they clearly are showing that they are not up to the job of progressing hur