Adam Davidson, CEO of Trident Royalties, discusses offtake milestones and catalysts to boost FY24. Watch the video here.
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I don't disagree. It's a sad state of affairs. Was a speculative punt and I got out today. Only saving grace for Hurr is POO. Only reason I was able to sell for something in my view.
Bod have done a poor job in respect to RNS releases. The new CEO may be doing a good job in protecting shareholders value but press releases leave little to be desired and does not show much faith in future drilling success. The news of stakeholders not supporting the next drilling programme shows there is significant risk as a compromise could not be reached. I still see Hurrican has a future but it is not the multiples I was expecting in respect to risk/reward. Hopefully the reserves update will show a better position and worth me taking a speculative gamble for future success.
Break-even point for the company was estimated to be between $30 and $40 par Barrel of oil so I am trying to be on the conservative side with these figures so you can assume this is the minimum profit also stated in the the recent webinar they had a contract in place with a minimum price of $35 barrel which allow had a upside in the contract which if the price of oil was above the agreed price the company would receive the additional difference in the price
$64 at present - $40 = minimum $20
10,000 Barrels of oil per day X $20 = $200,000 par day
$200,000 X 30 days = $6,000,000
$6,000,000 X 12 = $72,000,000 par year
12,000 Barrels of oil per day X $20 = $240,000 par day
$240,000 X 30 days = $7,200,000
$7,200,000 X 12 = $86,400,000 par year
If price of oil stays above $64 par Barrel
12,000 Barrels of oil per day X $24 = $288,000 par day
$288,000 X 30 days = $8,640,00
X 12 = $103,680,000 par year
Net free cash† of $106.2 million 30 November 2020 (Money in the bank)
The decision to limit production from the 205/21a-6 well to c.12,000 bopd in November 2020
Cash $106.200,000 + $103,680,000 = $209,880,000
If one year of average price of oil being $64 minimum
There should be 7 more months from January next year as the bond wasn't issued until the 19th September 2017
$8,640,000 X 7 =$60,480,000
$60,480,000 + $209,880,000=$270,360,000 so providing an average price of $64 which I would hope from now on will be the minimum price from now till September next year we can easily repay the bond back with all of the tax losses that can be carried over and assets on the books surely this has value going forwards
The Question is is do we allow the board with their bad communication skills (for instance tell everyone there's potential share dilution before even coming up with a good quality strategy to ask for any additional funds)
And at present a complete inadequate plan/forward planing and to be honest insight into what assets they have and what they going to do with them.
The new CEO has done and is doing what I called the head office of hurricane energy and no-one picked up the phone I sat there with the phone ringing for about 2 to 3 minutes with no answer.
If they are just going to wind up the company or keep the company just ticking over until the bond is paid back then I propose any shareholders that would like to get together and form a group to propose that the board answer for theirselves and to question if we need them in place to keep ticking over and not just get a nightwatchman in for doing that.