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Guys, it is great that many of you have fought back for your rightful losses. Also thumbs up to the guy who is trying to initiate the class action. The directors may go ahead with this deal believing all the legal advise but will not be able to sleep for a very long time knowing their actions have left them exposed. Personal reputation aside, their entire wealth is at stake. I have discussed with many people over last few days and it is amply clear that wheels of justice grind very slowly. And this emboldens the evil in believing nothing will happen. People who can provide justice on other hand know it is not their money and because of stock markets love to advise 'you knew the risks' but implore/kick them a little more and they wake up. Everyone loves the smell of a scam also. It is amply clear the BoD's action of kitchen sink now was to fructify this day light loot. CA's topping of shares exacerbated the situation for them. Write to your MP's also to raise a parliamentary inquiry and question on this scam. However, remember to search your facts well, as you can see for every question raised Mcadder and likes do come up with an answer. This answer may or may not hold legal basis. Key for me from many of the discussions here are :-
1. BoD's action in light of CA2006.
2. Bod's assumption of oil price in its various reports and end scenarios.
3. BoD's creative accounting to show they can't pay the bondholders even though revenue earned is increasing every day.
4. BoD's announcing a forward work program and not producing anything.
5. BoD taking advantage of covid norms in not engaging with any shareholders.
The people out there love to play around and twist words as common man does not understand this mumbo jumbo.
British: exactly what are “rightful losses”
You rightfully lost money ?
Why did you continue to hold onto your shares when the company were very clear, on many occasions that there was a possibility that there may be significant dilution or no remaining value for shareholders... It’ll be the first thing your lawyer asks, why didn’t you sell when you read this? What did they say that encouraged you to hold on to your shares AFTER they made those statements? I’m afraid those warnings are the BoDs defence against those with “rightful losses”
Risks relating to options for the Lancaster Area
"Bondholders should note the specific risks relating to each of the possible options for the Lancaster Area, including the NFA case and the various incremental development options as outlined below.
Risks in relation to the "No Further Activity" (NFA) case
The Restructuring Business Plan is based on the NFA case, which assumes no further development
of the Lancaster Area, continuing operations as at present, and reliance on extended production from the P6 Well.
In the NFA case, the Plan Company continues to produce from a single well, the P6 Well, supported
by artificial lift from electric submersible pumps (ESP). There are two ESPs in the P6 Well (an upper
and lower ESP). Production is currently supported by the upper ESP only as the lower ESP is
currently inoperable, and will likely remain inoperable without a workover of the well. Should the upper ESP fail and the Plan Company be unable to utilise the lower ESP, there is a material risk that the Plan Company would need to produce from the P6 Well at a reduced rate. This would impact cash flow and reserve recovery from the well.
Relying on production from a single well as the Plan Company’s only source of revenue until at least H2 2024 creates several risks around well failure including risk of ESP failure"
OGA production consent risks
"Continued production from the Lancaster Area requires OGA approval for production to continue below bubble point. Whilst the Plan Company is confident it will obtain approval to an updated FDPA to allow for production below bubble point, this will be based on ongoing review of production of gas liberated from within the reservoir. If production below bubble point results in production of gas liberated from within the reservoir, the Plan Company expects its production consent to be withdrawn."
mcadder,
" If production below bubble point results in production of gas liberated from within the reservoir, the Plan Company expects its production consent to be withdrawn."
Further absolute PROOF that this BoD is determined to wind the company down, no matter what.
It is axiomatic that if one produces at 'below bubble-point pressures', gas (non-solutional) will be released, quite possibly at far greater volumes than flaring constraints permit, or (worst case) possibly even more than the FPSO can cope with.
I can't help getting the feeling that there's a bit more than just a stockmarket scam going on, but some essentially criminal intent. Or if not, some extreme stupidity. Who deliberately runs a train into a brick wall ?
Keep pulling on that communication-cord, folks, and let's cross our fingers that the automatic braking-system works, because the driver is obviously either asleep or dead at the controls, or suicidal. Obviously lost all notions of taking care of the passengers, whichever is the case. Wave flags out of the windows. Whatever.
This runaway train has to be stopped.
adoubleuk,
You're posting as if bubble point pressure is a "new" issue.
Heck, it's been discussed about here since a year ago and has always been a problem going forwards (and why water injection is required - which you seem to dismiss as just nonsense talks).
HUR have asked for consent from OGA for up to 300 psi below bubble point pressure.
I think AM does have some capacity to be flaring in accordance with the permit, but as you say, the gas volumes could rise significantly as the pressure drops.
Game Over.
When the BOD put out those sip called warning the POO was no where near what it is now, the company’s net cash was nothing like it is now, beside they did not say they will create significant dilution but warned if May be one option
The BOD have clearly intending to wind this company down as despite most oil companies having returned to normal business cause of POO being even higher than before the pandemic, our BOD have put out one negative RNS after another and forced the SP from 12P to 0.7P!!!
Now if that is not deliberate I don’t know what is
There is very clearly some criminal intend by this BOD as soon or later it will out come out of the wash what these criminals are going to gain by running the company in such positive oil and gas business environment down
We need to write to Newspapers, Our MPs. The FCA and even to the Scottish parliament to bring their criminal intent out into open
If these criminals did not have dark and self benefiting intent they would not have hide behind the excuse of the pandemic and skipped any interactions with the real owners of the company the shareholders, FCA and the MPS should insist on this very simple process, why is the company’s BOD are
1- trying to pay the bond holders 15 months early
Knowing that even with possibly difficult production now and in future they will be able to have enough money in the bank to pay off the bond holders
These criminals have shot themself in the foot
They though cause of pandemic and threat of insolvency they can force the court to approve their scam and so that after that these criminals can sell the company for a 1P per share and in process secure lucrative positions in the new owners organization and Fu..k the current shares holders cause bond holders having received good return on their investment will still get their money back in such event
re : CLASS ACTION. Legal firm have allocated partner to make initial investigations (based on 2017 CPR). Still early days and nothing might come of it... If it looks like a go-er then next step will be to collect list of investors willing to claim. Watch this space
Haggis
Suggest you tell the lawyers to look at the interaction between the company and RPS. It’s not just a coincidence that on the day that Trice left (once the water issue couldn’t be explained any more) that Roy Kelly also left from his role as Kerogen appointed Director. Kelly was previously MD of the RPS consulting division ... if this was just Trice pressuring RPS for a deep contact, which they agreed to support (despite technical uncertainty) then what was the story with Kelly? Who subsequently left Kerogen.
The story is not about what happens subsequent to the kitchen sink events which went on their inevitable course... it’s about who was asleep at the wheel to allow the deep contact to be “confirmed” even though the previous chair left because if this exact issue....
RNs. Interesting post.
The thing is that if you are going to question the legitimacy of the relationship between Hur and the first CPR - it seems strange that you can take the second as gospel and totally above board. Personally I don't have much faith in the CPR process as it is figures supplied by the company so presumably the outcome is pretty much guaranteed to be the same view as the company initiating it. The number of disclaimers means that no one is responsible should it turn out to be Complete gibberish.
The main red flag for me is the complete disappearance of oil at Halifax with no extra drilling from what I can tell. Yes Lancaster disappointed but can they be absolutely sure there is nothing at Halifax ?
@RNStranslator : exactly! There is lots of circumstantial evidence company knew oil water contact was suspect prior to finally admitting it in Sept 20. Indeed I have spoken to someone who challenged the data as early as 2017.
Post kitchen sinking events are simply bond holders (who I still believe to be Kerogen) fighting over corpse at expense of existing share holders
Captain Swag, I have written to following email addresses
oga.correspondence@ogauthority.co.uk,
Russell.richardson@ogauthority.co.uk,
andy.samuel@ogauthority.co.uk
Requesting them to investigate if actually what Hurricane says is true. OGA is the authority in this matter and they should do justice if Hurricane is perpetrating an oil scam.
@CaptainSwag : the lesson I take from this fiasco is that CPRs are not independent, nor to be trusted. This is major issue for private investors. Had HUR delivered at the "low" end of 2017 CPR then company would be fine and share price north of 60p.
Your are correct to observe the kitchen sink CPR may also be pessimistic with its own agenda - but sadly appears closer to truth.
Haggis:
The RPS fundamental issue was they estimated the water gradient, which gave them the calculated contact. They had no reliable pressure points in the water leg, they assumed it was oil because minute samples were supposedly obtained from that level (less than 20cc).
The actual water gradient is now seen as 70psi over pressure which confirms the shallower contact...
One CPR estimated (and got it wrong, the other used data from production wells which confirms the owc)
If Kerogen were bondholders (which they aren’t) then why would they need to be wall crossed to understand the plan which they had been negotiating with the bondholders???
Haggis
As someone with decades of experience in the sector you are right to be suspicious of CPRs. They are just an estimate based on incomplete information not a gospel truth. It also requires a lot of technical understanding to appreciate the actual risks. Combine that with which CPR provider it should give you confidence or make you run for the hills.
Fwiw, having dealt with most CPR providers and seen their work and “approach” and I believe that ERCE is closer to the truth, partly because they have more data, but secondly I know for a fact they can’t be arm twisted...
RNSTranslator, your masters must be paying you well to constantly defend the boards scam. You also constantly defend Kerogen, we all know Me Cheng is party to the scam.
Aduk
You’re a busted flush.
Just explain to everyone how Kerogen are a part of the scam... or are you unable to actually do that.
Evidence would be helpful.
Aduk
The difference between us is that I explain my reasoning with evidence and relevant factual information. You just say it’s a scam by the BoD, Advisors, the OGA, and the Chinese are behind it all... pure nonsense without a scrap of rational argument or evidence... your an angry investor who didn’t want to believe what you were being told...
Aduk
“ we all* know Me (sic) Cheng is party to the scam.”
* me or me and three mates.
Helpful background from Psychology Today 2018 for those confused by what’s going on here:-
“ But what about when a person does push back against the facts, when they simply cannot admit they were wrong in any circumstance? What in their psychological makeup makes it impossible for them to admit they were wrong, even when it is obvious they were? And why does this happen so repetitively — why do they never admit they were wrong?
The answer is related to their ego, their very sense-of-self. Some people have such a fragile ego, such brittle self-esteem, such a weak "psychological constitution," that admitting they made a mistake or that they were wrong is fundamentally too threatening for their egos to tolerate. Accepting they were wrong, absorbing that reality, would be so psychologically shattering, their defense mechanisms do something remarkable to avoid doing so — they literally distort their perception of reality to make it (reality) less threatening. Their defense mechanisms protect their fragile ego by changing the very facts in their mind, so they are no longer wrong or culpable.”
TransmitterTrannyman - a wonderful description of yourself and the other paid canaries. But aren't you rather letting the side down..?
Ah Senseman you’ve finished watching afternoon telly.
“ Their defense mechanisms protect their fragile ego by changing the very facts in their mind,”
of course you don’t actually have any facts in your mind. Or perhaps you do but you’ve unconsciously changed them to protect your fragile ego...
Still waiting for you and the other dreamers to put forward some facts or rational explanation... suspect it’ll be a while/never.
Don’t you find this ever so slightly embarrassing?
Senseman - why do you insist on using offensive terms to describe people on here? No wonder no one takes any notice of what you say.....
"Tranny (or trannie) is a derogatory term for a transgender, transsexual, transvestite, or cross-dressing person, and is an offensive slur in mainstream contexts."
"By 2017, the word was banned by several major media stylebooks and considered hate speech by Facebook."
Trannyman - of course it's hugely embarrassing - for you and the other canaries
Do try and keep up