A couple of posts from todays Hurricane BB FYI price tripled after the vote against hope you all do17 Jan 2022 14:51
In June, Maris was telling the High Court that 56c on the dollar was the most the bondholders could expect to receive.
The liability was $230 million plus a 7.5% coupon.
You’ll recall, Maris said that it was best for shareholders if the bondholders swapped $50 million of bonds for 95% of the equity
and the company doubled the coupon on the remaining $180 million. The High Court agreed with Crystal Amber that this
was not what the statute was to be used for and blocked the restructure.
Today, Maris has reluctantly admitted that with the net liability now is $28.5 million, that by the end of July and that the bonds should be fully repaid, leaving a cash surplus of between $8 million and $38 million. Thereafter, Crystal Amber calculates that the existing P6 well should be throwing off $140 million per annum of cash for at least another two to three years.
Crystal Amber, now a 28.9% shareholder, has continued to have to fight the executives around balanced disclosure. In September, with the shares at 5p,
the company referenced the risk of production ceasing around “bubble point, ” which hit the share price by 20%. Today, the company said that “bubble point” has passed with no issues. In the middle of December, an 18.29 announcement on a Friday evening, reiterating what had been said to the High Court in June about the unlikelihood of developing an adjacent field with JV partner Spirit Energy, saw the share price fall by 20%.
Crystal Amber values the P6 well alone at $350 million (13p a share). Even ignoring the value of other acreage, Hurricane has around £1 billion of tax losses.* These can be utilised by a larger player and these change hands for 25c on the dollar, equivalent to 12.5p a share.
*At 31 December 2020, Hurricane had ring-fenced trading losses of $468.7 million and supplementary charge losses and investment allowances of $707.8 million. In addition, capital allowance pools of $383.5 million were available to be used against ring-fenced trading profits.
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