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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.
“ 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....
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
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:"
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...
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
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!
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...
.
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...