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"Bonds trading around 50% of face value. Basically if Hur elected to they could buy them using existing cash and cancel them."
No they can't, nor can anyone acting in concert with the company.
When you borrow money via a bond, one thing is a given: they get paid back before the shareholders get a return.
You (as shareholders) borrowed their money to increase the returns on your investment, if it works and they are paid off leaving you with enhanced returns on your investment, if it doesn't work out and they don't get paid back you don't get any return... thats the gamble shareholders take when buying the shares.
"HUR board ask you “ We will give you 115m today to close out the debt, that is their market value.”
Would you accept?"
Why should I?, at the moment you're generating enough cash to pay me back the full amount at the back end of the year and before the well cr@ps out economically.
If the price keeps up and the well keeps going longer the shareholders can have whatever's left, and can then do as they wish.
You may not like it but that is the reality of situation,
Agree Genghis15,
Whilst the BOD may be incompetent to move this company forward, they have been 100% honest throughout the past year. In fact, they warned the shareholders well in advance of what's to come.
"significant reduction in resources" --> resources significantly reduced.
"significant reduction in reserves" --> reserves significantly reduced.
"significant dilution to existing shareholders" --> ????
Bonds trading around 50% of face value. Basically if Hur elected to they could buy them using existing cash and cancel them. I think 20m is classed as restricted funds but they could spend 50m and wipe out 100m.
As mav d stated let’s wait to hear about income from sales @ current oil prices it should offset the production from a single well.
Imv ,CA could ensure they have a board seat and also the bonds are purchased in the market at discount using some of the cash pile , ensuring survival and indeed a prosperous future.
Think I hit a sore spot, yes I have an opinion, suck it up buttercup.
Eurofil - Your contribution on this BB is NIL !
So, you don't count, or matter.
Just try to say something pleasant in your life for once. FFS.
Desperate negativity debaters from the usual suspects and they always appear when the share price is starting to recover from a ridiculously low level, makes you wonder who is paying the trolls wages as their perseverance is constant on here on a daily basis.
TopCat - Your second paragraph. Yes we agree with you.
Some of us are already have law firms looking into the possibility of a 'NoWin- NoFee' Class action against HUR, the OGA, The CPR people, and everyone else who may found to be involved with this shenanigan !! Watch this space. No one is going to want to buy HUR with that over its head......
Topcat, great question and follow on question is 'who should be sued'? as someone is wrong either then or now.
Genghis - I agree with you. I think RB is just lowering his $cost average, out of desperation!
Nothing more.
He is a trader.
He is not is the O&G physical business.
He'll trade anything.
He understands the difference between speculation and gambling.
Now, he's gambling........
“So, you think CA know better than the BoD”, yes, in this case I absolutely do.
“That the Bod want to sink the sP Can't see why they woul want to do that.”, unfortunately, please simply pay increasing attention to the Wordings of every RNS update during past ~9 months, and compare the unnecessarily way overly negative trend with any other listed company updates in similar status and DYOR!
As nicely highlighted by others here:
“CA have their own team of GeoScientists/Reservoir Engineers, financial analysts/planners, ........ etc.along with access to plenty of available unbiased WoS region data, and although their HUR stake was already very notable, today’s further increase/buy in is extremely significant and can still further continue to increase as HUR BOD seem deceitful here towards the shareholders who pay their wages, and have recently been unexpectedly taken back by fast rising Brent prices and now increasing CA positive activism.”
Elementary
So, you think CA know better than the BoD,That the Bod want to sink the sP Can't see why they woul want to do that.
Consider the record.
Trice has a dream, drills holes, finds oil. posits a huge resource,.
Drills on Warwick, Halifax, Lincoln eith fail to flow or diisappoint. Lancaster waters out 1 well, has a big WC in t'other. Trice looks wrong.
Mb he's right all along, but the drilling record doesn't read that way to me. Nor to the BoD, nor to the industry which never believed him.
And CA's geos will be telling RB what he wants to hear just as much as the CPR writers are influenced by HUR,
You wanna bet on CA, go ahead. long odds, tho, imho.
“I have a feeling that CA are not done buying yet.”, and so do I which is great, CA’s huge buy in so far is essentially Outstanding news for HUR shareholders IMHO.
I have a feeling that CA are not done buying yet.
--
Minority shareholders' rights vary depending on the percentage of shares/voting rights they hold in the company, as follows:
At least 5%: right to:
apply to court to prevent the conversion of a public company into a private company;
call a general meeting;
require the circulation of a written resolution to shareholders (in private companies); and
require the passing of a resolution at an annual general meeting (AGM) of a public company.
At least 10%: right to call for a poll vote on a resolution.
More than 10%: right to prevent a meeting being held on short notice (in private companies).
15%: right to apply to the court to cancel a variation of class rights, provided such shareholders did not consent to, or vote in favour of, the variation.
More than 25%: right to prevent the passing of a special resolution.
https://uk.practicallaw.thomsonreuters.com/5-613-3685?transitionType=Default&contextData=(sc.Default)&firstPage=true
If not CA then definitely Slift is the culprit here...lol
Looking forwards for tomorrow trading....and not selling any as today rns seems tge beginning of the rise...
GL
“CA clearly think there’s oil under the contact, Equipoise don’t agree and they’ve seen all the data... ”, yes, data provided by HUR only who now without a doubt IMHO want to sink the SP at every opportunity, CA also have their own geologists and access to plenty of data available via the likes of IHS Markits for WoS.
You only need 5% to call an EGM and propose removing the Board.. so why didn’t CA do that earlier after they spat their dummy out? They know the management will not take on the bondholders against legal/advisor advice .. CA clearly think there’s oil under the contact, Equipoise don’t agree and they’ve seen all the data... CA are an activist fund, they can’t just sit on their thumbs whilst this goes into the pockets of the bondholders..where’s their credibility if they did that? . a public display of “I’m up for a fight” to the bondholders... albeit CA have at least one hand tied behind their backs and a fanciful geological model...
In total CA have purchased an additional 55,178,400 since the 11th March. This should bring their average down from last month where it was 10.2p.
Only 4 reasons I can think why they would do this:
1) They want to reduce their average below that of a low-ball Take-Out ~ in which case we should expect further purchases
2) They wish to make a hostile TO bid
3) They do not believe that a massive dilution is inevitable despite the kitchen sink RNS, hence believe they should not await the inevitable 18%+ dilution
4) They do not believe the CPR technical analysis or that there is a risk of coming to end of economic life before a Forward Works Programme can be agreed with the Bond Holders
Key reaction will be whether Astaris Capital Management and Kite Lake Capital Management (UK) LLP now reduce their shorts. As collectively they hold 2.1% of equity in shorts you may see another circa 55m shares bought quickly if they decide to close these out. Bond prices position reverted to where it was on Friday so this will also be interesting to see how this changes in the coming days.
Keep strong!
Kerogen, the Master, but if a person is not faithful to HUR, how they can be faithful to the Master?, the corrupt tie's dreams will be kicked to the Garbage heap as they are not faithful and can not be trusted.
DifferentAngle , 17:30Message, I totally agree but these corrupt Ties must be taken to the court, or else this Country will become the Paradise of Corruption and for Crooks to get away easily. let the ties uri**te in their Paints with freight.
They should inform the legal authority re: breach of Company laws re: BOD and their actions?Duties and get rid of these Fat bulging pockets TIES.
Good analysis slipanchor, very much looking forward to a potential EGM here to replace this unusually unprofessional, incompetent, suspiciously do nothing but CYA, and possibly corrupt executive team.
The last time I checked PI held29% of Hurricanes share capital and with CA 14 5% may be enough to call an EGM and win a vote of no convidence.
I think Kerogen might be lined up to be the recipient of the shenanigans that are taking place.
It was Kerogen who helped the spiral downwards by announcing their stake was up for sale.
AIMHO DYOR.
This is positive, although bear in mind, CA have mopped up a huge a mount of PI's selling - when this happened during the last drop, the price recovered to 3p+ whilst they bought and then dropped back when they finished. So be careful, CA buying does not mean anything more than CA think anything under 3p is a bargain.
Saying that they have always maintained the shares are worth more than 3p, so might be a smart move - or they believe in their geologists who think there is much more oil down there..
All in must be a good thing as CA know more than us, and they are buying... so hopefully good am reaction testing 3p.
GLA