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Naughty Mr Bond, that drill needs your attention more.
lol...though lets be fair - without the bond we would probably never got to EPS stage...though with aim companies they always seem to be overvalued on a promise rather than actual production!..so maybe that would have been better!..lol
The names Bond, Convertible Bond. Licensed to kill equity.
imho there is no point hur worrying about the bonds at this stage. quite frankly the main issue is how hur are going to go forward and keep the company running long term. this means cash is king. it gives options although i suspect they will still need further funding partners along the way if enough oil is there and gettable.
if hur has a futrure the bonds can be refinanced - if it doesnt then everyone will lose out. the obsession is with bb commentators who are looking at trying to place a value on hur considering its debt. of course those with a negative view are using it as ammunition
Why is it mug punters on here think they know more about corporate finance than a qualified FD?
Don't you think they would have bought the bonds by now if it made financial and strategic sense, or,? There may even be contractual impediments to doing so anyway.
Forget the CBs. The only thing that matters here is oil, well performance, and OWC.
CA are very nimble too - if we talk of take overs then I think the reality field widens somewhat - draining Halifax and buying all or most of the CBs surely could be factors in such a scenario . Obviously I bow to those with more knowledge and that to my mind includes CA , Kerogen , Spirit and the BOD not sure who else qualifies for that list - I do not
Guess I was writing while the more nimble and concise bransonbull got in ahead of me.
Apachewind. I predicted a couple of days ago that if we cleared the CBs people would complain there's not enough money for remedial work.
But how about they clear half the CBs for circa £25m? They couldn't buy the lot at that price anyway, probably not even half. They'd have enough left over to afford the water injector. They'd have to be sure of a return on remediation though.
I think they should buy some bonds back on the secondary market. As many as they can under 30% of par. Might even get 10% of them. It would ease debt pressure, and push bond price higher, which would kind of reassure the market.
Hi Branson (if available) = realistic , but good point on equity price benefitting. If i knew what reality was in regards to Hur share price I would be a very happy man
let's be realistic, if HUR start buying CBs up via secondary, the CB price would recover somewhat...and they wouldn't buy them all only those from distressed sellers or those who want out...but they could for a modest sum make a dent in the debt which along with POO recovery would help equity a lot..IMOV
so for c.70 million we could clear the CBs (if available) and save 10 million a year in interest - so year 1 and 2 interest is 20 million so for 50 million in real termas wet get rid of 200 million in debt. Does seem attractive - but how would we then do remedial work or new well? Just like to add what if we can drain Halifax from one of our other fields .... see I'm in one of my more optimistic moods today .
Apart from Spells like Team Spirit + CA. Spirit put in a huge investment, they will want some return...
230m USD at 7.5% not 258 m USD at 8%.
Secondary markets - bonds trading at 28 -30 cents...in the USD, so HUR could dramatically reduce debt by purchasing CBs on secondary market, as suggested by 1) Stu and 2) Richard B from CA
G67 "ask yourself what exactly they are buying. "
Yep exactly what I've been doing. I don't believe anyone knows how much oil is actually down there yet so how can any prospective buyer put a price on it?
At the moment there's 'some oil'+100m cash+ 500-700m tax credits- 200m debt (all ballpark figures), can't see anyone bothering to take a punt on HUR just yet
Cadger, couldn't agree more. People on here can talk this up for all their worth and talk of "a juicy bid" is pie in the sky imho. If this business is such a bargain for a buyer then ask yourself what exactly they are buying. After all the bad news there doesn't appear to be much meat left on the bone. Don't be a mug like like me and pile money into this.....
The interest will have to be paid on the bonds, from memory there was 258M dollars in bond at 8% which works out at just over 20M$ a year in repayments .
Hurricane would not exist now as a producer if the true OWC had been known back when they raised the 500 M$ in cash and bonds to convert the A M, instead of having a oil field the size of Loch Ness, it has been DOWN GRADED to no more than a village duck pond.
Beware of crystal amber for years they have traded into every rise, to keep there funds balanced, they are not white knights.
I was a LTH and existed after 6 years plus down a 5 figure sum.