Member Info for adoubleuk

Nigwit,

"If I understand it correctly then in simple terms Hurricane have sold 50% of Linkwick for $387m, which is roughly £300m, valuing the whole field at £600m."

To my mind you haven't understood the situation correctly. Hurricane hasn't sold anything. They've done a deal for a 50%. Even if Spirit become Operator at an eventual FFD, Hurricane will remain the licence-holder. What they've done is exactly the same as a landowner renting some of his land out. That's why they call these deals 'farm-outs'. What's so hard to comprehend?

Hurricane gets what's called a 'free carry' in the oil industry. Think of St Christopher crossing the river. He remains St Christopher. Doesn't suddenly become Jesus.

One of the Highlights in the presentation reads 'Phase 1 programme of up to $181m funded at nil cost to Hurricane'. As a shareholder, that phrase 'nil cost' puts a grin on my face...

JK1,

"Although the presentation indicates that there are no additional wells planned for the GLA now until 2021, could re-entry / cleanup / testing / {sidetrack} of well 205/23-3A still be an option for HUR in 2019, from the now released free cashflow?"

Don't know. Tempting thought, though, isn't it? It occurs to me that rig availability might play a part there, but until TO publish a new fleet status report we won't know about dates for the Leader on GWA nor what the PBLJ story is (maybe).

I think it should be remembered that the planning outlined in the company presentation is nothing but that. Planning. There may be omissions, deliberate or otherwise. And never confuse strategy with tactics. Plans can be changed, according to circumstances. Hence the lengthy disclamers about 'forward-looking statements'. They're not cast-iron promises.

ken10,

"If you people are not happy why Don't you sell up and fook off."

Post of the day, imho!

Wellwell,

"So come on guys.....what's it to be? Is RB still a scheming scumbag trader willing to sell HUR out on the cheap, or is DrT a scheming scumbag CEO willing to sell HUR out on the cheap? "

My money remains firmly on the first of your propositions being the most likely of the two.

RB's tweet is an insult. 'Long memories' indeed. That AGM was only two-and-a-bit years ago. Does he think everyone (other than himself, of course) suffers from Altzheimers, or what?

SiPP,

" they indicate a Lincoln well. But, that had not been communicated to us until now"

I don't recall Dr T ever having been specific about the location of the mooted 2019 well(s) for which the contract options for the PBLJ were taken out. And now we've learned that the rig will be the TO Leader instead. Some little things still will need time before we get a proper view of the full picture. The next TO fleet status report might help to clarify things.

dspp,

"Firstly a thank you to whoever in HUR has been fielding my requests for a proper top structure map with the relevant locations marked. "

Yup, a big 10-4 to that!

I'm highly intrigued to see that the three 2019 wells are planned to be drilled 'outside-in'. Plus if they're really planning to tie in 205/26b-B (Lincoln) rather than 205/26b-C (Warwick), that will be a heck of a flowline run! I make it close on 8 km.

Wellwell,

"At the moment the GWA has exactly zero barrels of 2P reserves. The Spirit deal is reflective of that risk but also greatly accelerates the CoS in changing from 2C to 2P.

Otherwise without it we’d be fumbling along funding drilling for years from revenue and I suspect the majors might still hold back in some sort of a game of brinkmanship. This will make them sit up. "

Just for a change, I find myself in full agreement with your post! Especially the last two sentences. Today's RNS came as a complete surprise to me, as I supect it did for just about everyone else. The news has come out of left-field, and I think it will bring both Hurricane and Spirit to the attention of individuals and institutions who possibly haven't really looked at the two companies before. And having read the pre-JV communication from Centrica wrt Spirit, an IPO is part of the strategy, and I wouldn't be surprised if assorted II's are just waiting for a chance to get part of that action.

This is my first post here today, because I've essentially been mulling over the news and inwardly digesting it. Because it seems like something of a game-changer, and incredibly positive, in my opinion. And I'm willing to bet that Dr T has got that characteristic huge grin on his face, likewise the rest of the BoD! I'm also prepared to bet that there must be a number of BP / Total / Shell / (et al) shareholders who are wondering how they got blindsided like this.

Today's news can be essentially split into two halves. The financial side and the technical, which is a corollary of the first. Personally I don't want to comment for now on the financial stuff on this BB, because there are others far more qualified in that domain than I am, already doing so. But the technical aspect is fascinating, and some of what we've learned today will put paid to a lot of idle speculation that's been doing the rounds for the last couple of years or so. (And I'll admit it, on a couple of points such as the planned Lincoln tie-in to the Aoka Mizu force me to eat humble pie, or rather, my own words regarding some stuff I've posted here in the past. But hey-ho, that's life!)

It's going to take a few days for all this new news to properly sink in....

Oh, and a bit of free advice. The company presentation should be considered obligatory and required reading for everyone. The RNS is only part of the story.

Wellwell,

"As for Miss Dosh, why would I have an issue with her posts?"

Of course you wouldn't, you horrid smarmy person. Missdosh delivers information freely, which you lap up, but then use to insult others, or distort for your own devious means.

Beware, man.

The biting question now is who's monitoring the FCA?

:-))

JK,

"Well, aren't I the centre of attention tonight!"

Don't know. As explained earlier, just back in.

However, now is the time for real people to start dismantling a few things, starting with TECA. Let's talk about in better detail 'you know where'! But later, 'cos I'm dog-tired.

Wellwell,

"Decision time I'd say. Leave or perpetuate"

Or maybe do both at the same time? Like leave AND perpetuate?

Winner takes all.

Watch the spread....

Cebo,

"Adoubleuk, thanks for posting another cracking couple of pictures "

Sorry, but I'm afraid you've got the wrong person. I'm currently at a truck-race meeting in the Limousin area of France, risking my life trackside and getting wildly drunk with the teams afterwards, all of whom are good friends. Or rather, that's not strictly speaking true. I'm now back in my hotel room, have downloaded the 720 or so pictures I've taken today onto my trusty Panasonic Toughbook CF-FB, and backed them up on my Lacie hard-drive, drinking another beer to ensure I remain drunk enough to go risk my life again in a few hours' time.

Anyone interested in this sort of s*** can take a look at www.camioncross.com or buy a copy of 'France Routes' magazine if they happen to be visiting France.

In other words, I'm busy elsewhere than WoS or Dubai, though hope to visit Rotterdam sometime in October. To take a photo of a boat. But that will somewhat depend upon on how much money I can make playing poker in Marrakesh, in three weeks time.

So the photos of Dr T and Mr Stobie have nothing to do with me.

Maybe they were taken by Nigwit.

argus1,

It's exceedingly rare that I post on a BB of a share I'm not invested in. However I do look in on this one from time to time because as a professional oilman it can be really entertaining. However I note your reply to JayKay.

"JayKay1, Hurricane and Ukog have some similarities so are good to compare."

And I DO happen to hold shares in HUR.

Some of the similarities you point out are true. However the one regarding debt is not, and it shows you have utterly no understanding of Hurricane's finances. Because HUR has no debt. The 7.5% you mention is money put in escrow following last year's fundraise to backstop the bonds that were issued.

Comparing HUR and UKOG is like comparing apples and giraffes.

You failed to point out the dissimilarities. And doing that would take up a greater space than these BB's permit. But I'll name just one. HUR's SP is currently hovering around the 50p mark. UKOG's is around 2. 'Nuff said.

WWN,

Thanks! But now the bad news: I'd already found that one!

But that's the thing. W.Brentwood is one tiddly little oilfield out of hundreds in California alone. (Let's forget the rest of the USA for now.) It's literally a drop in the ocean. There are tens of thousands of oilwells in that state, three orders of magnitude greater than all the onshore oilwells ever drilled in the UK. (I think: maybe just two orders of magnitude, but nevertheless that's quite a difference.)

This makes me think that our CEO's have got some very good connections, and why I feel happy shoving some money into shares in their company. Because I'd never have heard about W.Brentwood otherwise.

Put it another way. Those three little dirt-cheap workovers on Munroe Swell with their cumulative 70 bbl/day will within a couple of months pulled more oil out of the ground and generated more money than UKOG's Horse Hill has produced to date, over a matter of years. They'll have paid for themselves and making a profit not too long after that, most likely. And this is just the beginning, and an add-on 'bonus' in RBD's portfolio. Yet people continue wetting their knickers over UKOG and pouring money into that company, for some reason which I find incomprehensible.

OK, this sounds like a 'ramp' for RBD (in which I'm invested) and a 'deramp' targetted at UKOG (in which I'm not, and never have been). But ramping and deramping are against LSE's (and the FCA's) 'posting rules', and that's not what I'm trying to do. Just trying to compare a couple of AIM-listed O&G shares, that's all.

Hey! It's a free world (supposedly)! Someone might IPO a new Fund to Save Flood-Ravaged Atlantis tomorrow, and someone might buy their shares. And that's their business, not mine. But don't expect me to put my money in there, please.

This feels like a very nice share to be invested in right now. A top-slice before Xmas might not be out of the question. Just to ensure I can afford some brandy-butter to accompany the Christmas pud!

shedful,

And here's something to ensure no sleep...

https://www.youtube.com/watch?v=5tYT2V12GQ4

yuyus,

"Totally agree re flow rates , no matter what technology you have in place a drill bit sniffs it out and either testing or producing gives flow , reservoir data . The confidence to drill more adds exactly that and the $8 is a bonus."

You'll forgive me, I hope, but I feel that's a rather 'curate's egg' sort of a post, technically speaking. Not that I'd disagree with you saying that actual production (or testing, but that's not being bothered with, as this is a development well in an existing field) is the only way to quantify flow rates.

But reservoir data already exists, both in the form of historical geological and other logs, but also production perfomance. Plus also once the well is put on production, it may be decided to optimize it through workover including (for instance) acid-frac or other stimulation methods. (This is pure guess, by the way. Just something which might be done. Or it may be judged unneccessary.)

This is why personally, I'm trying to do more research into these California fields. Earlier today I described California as icing on RBD's cake (someone replied "I like icing!"), but reflecting, it may turn out to be more important than it initially seems. Cashflow is cashflow, after all. Everyone likes money coming in, especially with no debt to service.

Silo,

Many thanks for the link. Just watched the interview. Highly encouraging. Excellent strategy developed and now being executed by those two young men. Exciting.

JohnnyD,

" What’s the significance of 60 feet of pay ?"

It's very hard to say, and this is why I've been trying (only off-and-on, admittedly) to attempt some in-depth research into W.Brentwood's historical past, and more specifically its geology, to try and see what the old 'downdip' wells look like. So far I haven't found much, but if I do, I'll revert with a post here.

SMcN,

" Honestly, your calculations are so pathetic it makes you look as though you are a troll."

He is. The jack-off of all trades, master of none. My advice is to ignore it. Arguing with him is like talking to a boat-anchor. If you stay quiet he usually goes away for a few days. But then manages to gnaw his way through the bars and reappears. If not here, then on the BB of another share he isn't really invested in. Usually because he's just lost another spread-bet punt, according to conventional wisdom and widespread opinion.

Shedful,

Thanks a million for those links, both of which are very interesting. The first is highly technical geology, so probably not everybody's cup of tea, but if one has a reasonable understanding of 'geo-speak' it puts some things into context over a large geographical area.

The second is a very clear and objective 'lookover' of basement play history in the UK, and Hurricane in particular. I'd recommend it as 'essential reading' for newcomers to this share or interested potential investors.

I've been searching on google, trying to find anything more about West Brentwood. And in doing so, came across this rather delightful article...

https://www.theatlantic.com/photo/2014/08/the-urban-oil-fields-of-los-angeles/100799/

Definitely not the UK!