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Or see if there was any appetite amongst retail ?
Exactly slift - no one would fund that which is precisely what I touched on yesterday.
In Q4 of 2020 they had probably sounded out for potential interest for funding but having received no interest the company in December started warning about a potential for little or no value for shareholders. And for month's the discussions have probably been quite strained especially as the company were negotiating in a very weak position.
But the company did warn in December and we therefore only have ourselves to blame for any financial loss from that point....
"i can buy the incompetence and lack of links. the question is why they didnt look at alternative forms of funding? and how long they have been brewing this giveaway?"
Or engage with their largest share holders (at all) on any form of future funding, staggering attitude, staggering.
Most shares have been surging over the last few months and the general outlook is positive across multiple sectors.
Why persist with a company on the verge of banks with assets that have proven dubious. Head or heart?
"the question is why they didnt look at alternative forms of funding?"
They probably did, but who would want to fund and invest an unattractive FWP like that?
3.2m barrels for $60m. How will any investors get any return on that?
i can buy the incompetence and lack of links. the question is why they didnt look at alternative forms of funding? and how long they have been brewing this giveaway?
very sad. i have been expecting a big dilution since september but not this giveaway. i will be back in at 0.1p and see how the story unfurls further
Yes incompetence potentially, or maybe trying to cheap out.
They couldn't even secure funding - BOD probably didn't have any links to instituitional investors, and that's not surprising (no comms with CA, no interviews, never "sold" the FWP).
Think about it:
- The recent CPR indicates that the HUR acreage has 81m barrels of RECOVERABLE 2C resources net to HUR.
- The AM (already existing infrastructure within the acreage) has a 2nd and final option - a total of SEVEN YEARS.
The plan that HUR came up with:
- Spend $60m on a low chance of success drill (sidetrack) to recover 3.2m barrels.
Would you invest in that??
I certainly wouldn't.
slift - i agree. why do you think they didn't come up with decent plan? incompetence or something else?
It was game over when HUR BOD decided to downgrade reserves massively without a decent back up plan.
The "back up plan" (FWP) that they came with is very unattractive and doesn't even deserve any funding.
Game Over. Wasted.
Time to start a new game.
My guess is that the BOD were planning to hand the company on to the Bond holders in future months but with CA increasing their holdings and committing to take action forced the BOD to scuttle the good ship Hurricane ASAP.