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Mr Angle
you may not want to believe what i suggest, but this is what CA said today:
"The Fund, as well as all market participants, only have visibility over the limited published data."
they also reiterate "The Fund believes these estimates are very cautious and pessimistic in the critical issue of oil-water contact. Logs and sampling demonstrate the occurrence of oil below the 'new' oil water contact."
Even a novice petroleum geologist understands that some oil can occur below the OWC, especially in fractured reservoirs where there may oil trapped in fractures...which can be unrelated to the connected fracture system above the oil water contact.
These guys say they want a seat on the Board, so they can see all the facts and legal opinion, you don't get that by sitting and complaining about it, you increase your stake to a point where they cant resist..
"Slift .. you really are a d@ck .."
I couldn't agree more lol
"At 31 March 2021, the Company had net free cash1 of $127 million"
Did you donate $13m to HUR BOD in the past 22 days?
Nope try $140 million
22 lifting has been sold ...
Only 90 million to go then bond holders can do one ...
still 400 days to go ..,
Slift .. you really are a d@ck ..
"Bond prices have been solidifying with small increase in last week"
...
Let's see now..
CB issued: $230m
Ask price: 56%
Total: $129m
HUR cash in bank $127m from latest RNS.
Shareholder value: $0
Does that solve the mystery?
Bond prices have been solidifying with small increase in last week
I suspect that with the biggish spread between Ask and Bid we should see a further increase in coming days
https://www.boerse-frankfurt.de/bond/xs1641462277-hurricane-energy-plc-7-5-17-22
Cheers Bidds, glad you said that just read your prior post makes sense now.
Mistakeable
Yeah, I know why and I’m sick and tired of explaining it every month!
DYOR GLA
"Why would CA be buying so heavily in this case??"
1. To dump onto PIs
2. To still have a majority holding (20-30%+) for when dilution happens (i.e. funding arrangement)
3. They're dumb as fk
4. They have an average of -12p. So why not?
“"Why would CA be buying so heavily in this case??"”
“The fact that they are buying means they do not have any material information that the rest of the shareholders don't have.”
So CA are “buying so heavily” and Kerogen are not reducing their large stake here at all here because they “do not have any material information that the rest of the shareholders don't have.”, lol, I can accept that they may or “do not have any material information that the rest of the shareholders don’t have” but certainly NOT that then they would be buying and significantly increasing their stake for this very reason as it’s just not logical, DYOR!
On CAs site the monthly NAV update shows their average price per share going up from 6.6 in Feb to 10.2 in March.... but their holdings went up, any ideas why?
"Why would CA be buying so heavily in this case??"
The fact that they are buying means they do not have any material information that the rest of the shareholders don't have. They have been complaining of not being involved...
In reality it is quite embarrassing for them and Kerogen to have been two high profile investors in what turned out to be a "billion barrel "dud.
quiet, not dormant. I'm on the board multiple times a day.
There you are; the ink will be drying as I write, on all those bids by other Oil Co's..... NOT
are the majority of the CB holders also current equity holders?
So smaller bond kicked down the road and bond holders get control of the company.
This would effectively allow hur to self fund at least a water injection well next year.
Don’t be pretty though for current equity
From Reorg (provider of real-time news, commentary and analysis on issues affecting the distressed debt, event-driven and leveraged finance markets.):
"Holders of Hurricane Energy’s $230 million convertible bonds due July 2022 are expected to take control of the business as a result of a debt restructuring, sources close to the situation told Reorg.
The 7.5% notes will be partially equitized and partially reinstated, sources added. The plan does not envisage provision of new money, according to sources.
At March 31, the group had free cash of $127 million, comprising unrestricted cash and cash equivalents, plus current financial trade and other receivables, current oil price derivatives, less current financial trade and other payables.
Hurricane Energy is working with Evercore and Dentons as its financial and legal advisors. The convertible noteholders are working with Houlihan Lokey and Akin Gump, as reported.
On April 7, Hurricane said it was engaging with its convertible noteholders to potentially restructure or partially equitize the convertible notes. The group noted that if no agreement is reached with its stakeholders on additional development activity at the Lancaster field, it could continue to produce from the P6 wells before reaching its economic limit. The field could then be decommissioned with limited or no value returned to shareholders.
The company warned of potentially no further activity at the Lancaster field as drilling commitments are contingent on the group’s ability to fund and execute the development plan over the lifetime of the Lancaster field.
Hurricane reported average production of 11.2 kboe/d in the first quarter of 2021, down from 12.7 kboe/d in the fourth quarter of 2020 due to the company’s decision to reduce production from the P6 well in November 2020, natural declines and a temporary reduction in the production rate in early March 2020 which required an unscheduled well intervention.
In mid-September, 2020, Hurricane revealed that the size of its oil reserves could be less than half of what the group told investors during its 2017 fundraising. The company noted that it was writing down its oil reserves after a technical review of the oil fields in West of the Shetland Islands revealed a shallower-than-expected oil water contact at 1,330 meters and more rapid reservoir pressure decline. As a consequence, Hurricane’s estimated recovery from the two existing Lancaster early production system, or EPS, wells was revised down to 16 MMbbls from 37 MMbbls and the remaining 2P reserves now stand at 9.4 MMbls.
Hurricane’s shares are down 76% from one year ago, while its 2022 bonds are quoted around 48/50, according to Solve Advisors."
Views?