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Let’s presume oil price from today until bonds maturing in July 2022 ...is at $68 pb ..
We still end by 22/7/2022 with extra net cash of around $150m (apart from what we already have of cash pile),then we will be in a far better situation to negotiate with the bond holders or even a third party who might be interested to look at this profitable oil company with decent production and further assets to explore by a bigger company...
Why those bastards have done it now? It just make you wonder what sort on crooked BoD we have.
I would take my chances to continue as we are now rather than handed a few peanuts and for someone else to rob me later...
.
Q1 average oil production $11200 bpd
Q1 Oil price average price $58 pb
Current oil production is 11600 bpd
Current oil price $68.5 pb and predicted to go higher
And we are heading into insolvency.......Eh
The higher court judge will need less than 30 seconds to see through those crooks...
Calamari “ hasiba, can you tell us what your legal qualifications are.”
What a stupid question....do you need qualifications to figure out what’s going on here!
BTW..what are you? Squid or Octupus!
RosieNas....very good question that no one can give you any straight answer ...but their past history with similar situations dealings speak volumes and their present posturing of buying millions of shares ( in insolvent company!..)and to add to their existing big holdings means a lot .
CA management team are experienced and well known names in the city . Their investments advise comes from honourable and shrewd Richard Bernstein. Unfortunately some here believe CA had been outmanoeuvred ....meaning the CA team are buffoons .. lol
Hasiba:"
Current oil production is 11600 bpd
Current oil price $68.5 pb and predicted to go higher
And we are heading into insolvency.......Eh`"
The production rate will decline over the next 12 months..profitability declines because most of the costs are fixed...
From start of Q2 21 to End Q2 22 the company has to spend:
1: Capex $28mm
2: Opex $153mm
3: G&A $19mm
4: Interest $20mm
5: Decom $40mm
Add in Early termination fee to AM etc and you can see why you can't just take the production rate and multiply by the current Brent price and add it to $127mm. Its all spelled out in the presentation using an oil price of $64 or so....
You may not like it but this are the hard facts.... they will not have enough to repay the Bondholders, even at $64...
hasiba,
"We haven’t lost money yet until we sell ....our loss still a paper loss "
Better keep buying to reduce that paper loss.
hasiba - i do think that CA have been outmanoeuvred - however I don't think they are buffoons. They clearly made good profit from HUR since the beginning.
I just think that HUR have left them very little time to react and too much to overcome. They would seem to have clearly and probably successfully set this "giveaway" as a fait accompli. They have done this in a timely and well executed fashion - in contrast to the forward plans that shareholders were advised were coming. FWIW I believe the geology went against HUR but something possibly could have been salvageable. Why it wasn't is another question.
I do hope for shareholder's sake that something can be done - but i feel the bod may have been very "competent" in this particular task. GLA
“ You may not like it but this are the hard facts.... they will not have enough to repay the Bondholders, even at $64..”
Whatever figures we put can be only predicted...but fact is oil price at its highest of tge year now and climbing so will the figures become more positive with even at current production better than Q1 ,at 11600bpd.
It is more relevant for HUR to prove they are more profitable at higher oil price and even at 22/7/2022 due date ,they will be at much stronger position to negotiate with the bond holders or a third part may be interested when seeing stable production at increasing rate with higher oil price and more assets to explore for them.
It’s the rush of BoD to selling us down the river now at such urgency must be seen as corrupt and illogical....
Agreed CA have clearly been outmanoeuvred here but they most definitely are not baffoons and no one has ever suggested they are.
To just quote the production figures and assume that you can attach all of that as revenue to Hur's pot without taking into account any costs is extremely naive hasiba.
It simply doesn't work like that.
I'm afraid some of these posters who are like ostriches burying their head in the sand will still be hoping for another alternative or rescue from someone when this is either at 0.2p or just simply suspended.
Hasiba As much as you want to consider what if the oil price is higher, thats not the way business decisions are made.
Telling shareholders we're not a going concern but as long as the ESP's stay working and the oil price goes up we'll be fine...
macadder....
Didn’t you read the restructuring plans details mentioned in H1 of 2020 at low oil price of tge average around $34pb ..HUR was breaking even.
Now oil price $68+pb and in fact my estimate of pure profits after costs was a-bit conservative ..
More oil at higher price = better margins of profits in any oil company including HUR....these facts are basic knowledge...
hasiba, no, to all your points.
Here are the figures from the presentation put in a form everybody should understand:
Total Capex/Opex and G&A from Q2 21 to end Q2 22. $194,000,000 plus $20,000,000 interest payments
Average production rate for the WHOLE period 9600 bbls/day.
Net Revenue i.e Gross revenue minus the above at $60 is $45mm, $65 is $66mm, $70 is $88mm, $75 is $110mm
Even $75/bbl doesn't get you there.
The cost to produce a barrel is $45.
This is before you deal with abandonment provision and early termination fees etc...
This isn't rocket science... not auditors would sign off on this...
Agreed
You only have to look at the indepth circular to the bondholders evidencing how much focus and due diligence put into the behind the scenes plan.
Tranny
How will it cost $45 to produce a barrel between now & doomsday (and for the past few months) when much of the CAPEX already paid for? News to me. Creative BoD presentation accounting?
Capex $22mm Opex $153mm G&A $19mm Interest $20mm over 15 months
Add all that up and its $431,000 per day to run the system, at 9600 bbls/day average each barrel costs $44.90 to produce.
Its just maths...
Tranny
I bet my last farthing that the financials produced by the BoD in their presentation would not pass scrutiny via an independent account requesting they be proved
Sense man
You clearly don’t want to believe these figures signed off by the NOMAD, pwc, ERCE and all their lawyers...are they all colluding with the BoD?
Senseman clearly is totally lacking in sense just like several others who just can't accept what's in black and white and the reason for that is they hold onto this illusion the whole thing from start to finish is a scam.
It's turned out to be one big failure as a business because they simply took on too much debt and the man in charge at the time made catastrophic errors in interpretation of the data which led many to believe in the sheer amount of oil down there. The bubble on that interpretation was finally burst further down the line but by then it was too late.
Tranny & SlackyBladder
The PInky & Perky virgin act doesn't suit you
The village idiot know one can feed highly paid professionals whatever cherry picked date & financials you want and they write report on what is placed before them
Costing Hurr $45 to produce a barrel of oil - what a crock of cr*p....!!))
So what is the cost per bbl mr Sense?
Here’s a clue if you’re struggling.
Take the daily costs and divide by the number of bbls produced...
Cost $440000 per day, average bbls produced over the next 15m 9600 bbls /day... happy hear your analysis....but presume you’re still not answering questions?
Tranny - if Satan told you it was not hot in hell, you would ramp in agreement
senseman
Posts: 97
Price: 0.78
RE: Revenues and profitsToday 18:42
"Tranny & SlackyBladder
The PInky & Perky virgin act doesn't suit you
The village idiot know one can feed highly paid professionals whatever cherry picked date & financials you want and they write report on what is placed before them
Costing Hurr $45 to produce a barrel of oil - what a crock of cr*p....!!))"
With another of your many examples of childish immature language like the one above you wrote tonight it doesn't take a genius to figure out who the village idiot is.....