Member Info for adoubleuk

I can get distracted easily ! :-))

OK, that 'investormagazine' artictle is quite brief, fairly factual, 'throwaway stuff' written quickly by someone wanting to fill some column-inches.

But why the big photo of the 'Ocean Ajax' rig as a header ? That unit has never worked for Hurricane.

Really sloppy journalism.

Troughsnout,

I note that today id the first time you've posted here, so I'm treading carefully in replying to you. However you've mentioned something which has also been on my mind.

This morning's RNS regarding CA's increased holding, resulting in a nice SP uplift, coming out of the blue as it did. But being a suspecting, paranoid sort of person regarding the stockmarket, I can't help wondering what it really means. Almost invariably (and especially with AIM shares), there's some sort of sub-plot working in the background.

Something I can't help thinking about during the course of today, is what you've mentioned, the lurking threat to CA's continued existence after their AGM in November, due to Saba Capital's (a 25% shareholder in CA) stated intention of voting against a vital resolution.

OK, this is the HUR chatboard, no CA's, so I won't go into details, but just instead for others to do their own research on this if interested.

It all just seems a bit odd to me. As Alice said, "curiouser and curiouser". Something's eluding me here. Or maybe I'm just thick.

CA and the High Court step in as White Knights for shareholders of HUR threatened to be essentially wiped out of the equation unless certain requirements were met. It was (imho) tantamount to blackmail, but the judge saw through the scam.

But now, CA find themselves in a similar position (though with no blackmail implicit) in a few months' time. Wind-down, or takeover, or 'restructuring'. It's weird.

I don't wish to sound jingoistic, but a suspicion I have is that certain outside bodies, possibly Chinese, maybe by proxy, are 'taking a run' at not just Hurricane, but all those associated with the company, such as CA. And (thinking more), it could be for a number of reasons, but two in particular spring to mind.

Remember a few years ago, 'back in the good old days', when Hurricane's assets were being touted as 'potentially of strategic importance for the UK' ? Happy days, before idiots in government started wanting us to drive what are essentially big dodgem-cars (with about the same range) and put up windmills everywhere? What if in fact the resources actually STILL ARE of 'strategic importance', even if being P&A'd faster than s**t off a shovel. Two ways to go for a potentially 'hostile' adversary. Either you shut 'em down, or you grab 'em on the cheap, taking control of them.

Sorry 'bout rabbitting on, just random thoughts, but would like to see others' views. Or am I completely losing my marbles ?

JLivermore,

"h apologies, I see what you mean now. CNOOC, via Kerogen, could have potentially dumped the price to buy the company cheap. Roger that comrades. Please correct me I'm still misinterpreting."

It's a blatently obvious interpretation, but one almost impossible to prove. However 'circumstantial evidence' (Kerogen's sell-out, director 'resignation' etc.,) creation of 'ad-hoc committee', points singularly in that direction.

There's a lot more to this story than just the ups and downs of the SP of a small oil company.

schlemiel,

"It all 'feels' so wrong."

There, I agree with you totally, or rather again, past tense. It 'felt' so wrong, and the honorable judge immediately picked up on this, and gave his judgement accordingly. He obviously saw through the scam instantly.

There are still bits and pieces to be sorted through, however. A few more stones to be kicked-at to see what creepy-crawlies might not emerge to be summarily stomped upon if possible.

It seems that the Lincoln Crestal well may have been P&A'd (a well which was DST tested at 8000 bopd and planned to be tied-back to the FPSO, and for which such tieback equipment bought, under instruction of OGA. The reason for such instruction has never been made clear. And the whereabouts of such equipment (or potential future use) undisclosed.

OGA gave an 'extention' for this unexplained P&A to be postponed until September-October, but instead it's been done (if true) at high speed.

I'm in agreement with you, that a whole bunch of 'wrongdoing' has been going on for a matter of months.

Let's just hope that with a new BoD they can sort their way out of this, explain what they've found , and get this company back on something of an even keel again. 10,500 bopd doesn't lie, nor does an FPSO operator who would prefer a 'rollover' extension to their contract instead of sending their boat to the scrapyard.

schlemiel,

"Hurricane 1 no longer exists. It died when Zacaroli ruled in favour of the shareholder. Hurricane 2 is a different company under different management with a value creation ethos. "

I have to beg to differ.

'Hurricane 1' as we knew and loved it started to fall apart with the departure of Stobie, then Trice, and the terribly sad demise of Mr Platt, which I personally suspect may have been partly brought about by stress, related to all these 'company upsets'.

It is 'Hurricane 2' which now barely exists other than some dregs, purely kept 'onboard' so they can open up some books, and who will then be kicked overboard as fast as possible.

We're now entering 'Hurricane 3'.

https://www.youtube.com/watch?v=E8GcT5PBIC4

Mirasol,

"They were ****ged off for months by the likes of people on this board, the plan has been kicked into touch and the CA directors sure as hell won't be listening to them - would you stick around?"

Yes I would. Unless I had some shady dealings or underhand behaviour that I wished to cover-up. I have actually found myself in such a position as a 'board-member' of a minor publishing company. No 'shady dealings', but some bad decicions, and the whole thing went broke. But stuck in there 'til the end. And personally lost quite a lot of money as a result, as did some shareholders. But we did our best as we could, and it was a sad thing when it ended, but that's the way it was. Untenable any more, due to some bad press-run decisions, publication-problems, and so on, driving the company into true insolvency. A cause of sadness for everyone, but there was no way to continue.

Not at all the case as here, however.

Hurricane is NOT insolvent.

fandg2

"One due soon according to the RNS 16/6/21
"A further operational update will be announced in early July, in line with the Company's recent reporting framework."

That RNS was issued under the aegis of the now-extinct (or resigned) BoD. So is thus meaningless.

What we want to see now is a bit of transparency and how things REALLY are.

Whomval,

"We wait new news?"

Personally (opinion only) I anticipate no 'new news', although an 'operational update' might be welcome, with current production figures, though I doubt the've changed since last month.

There's a different thing I'm looking forward to, though, and it may take a bit of time. And it may just be wishful thinking, but I hope not.

CA's two nominee directors have been elected onto the board, one of whom as 'interim chairman'. Assorted non-executive ex-directors have run for the hills. An action which in itself is highly suspicious.

I very much hope that the new directors will be going through the books with care, and that with such care they may report back to shareholders the nature of whatever has been going on for the last 18 months. And then chuck Mariss and Chaffe out (something which I think all shareholders would agree to) once they've sung like canaries.

That judge hearing the case was nobody's fool, and saw through the scam for the thing it was, instantly. An obviously very intelligent and I suspect a rather likeable person . Frankly, personally, I don't care if 'heads will roll' as a result, because those ex-directors will be hanging their heads in shame as a result of the judgement and shareholder voting, and the likelihood of their re-employability as a result, slim.

There are many details I'd like to know, but they are not 'news'. Instead, explanations of past events. The relinquishment of the acreage up to (and including) Halifax. Why OGA required P&A of Lincoln. Why P&A of the Halifax well was not RNS'd. Stuff like that. There are skeletons in the closet. Time to bring 'em out for show.

senseman,

As written in response to 'schlemiel'.

Let's now use the past tense. I (now) believe it may have been an attempted 'stitch-up', hence assorted (now ex) directors running for the hills to save their sorry a***es. Hopefully the full story will come out, and some nanes named. But in the meanwhile, let's look forward...

schlemiel,

"It just gets murkier and murkier. You can see what is going on 'ere and it feckin' stinks"

I disagree with you. Use the past tense. And the honorable High Court Judge saw straight through the entire scam, and gave a 'pivotal' judgement upon it.

What will happen next is anyone's guess, and one has to trust in good decisions being made regarding the company, both operationally and in corporate terms. But tat judgement was 'pivotal'. You can't just chuck out the shareholders, leaving them with essentially nothing. An excellent 'test case' with an excellent result.

"dana sold for circa 17 quid"

I think that if Hurricane were to be taken-over at 64 pence per share (by whoever), everyone would be happy with that.

DC,

More ESP stuff in case you or anyone else is interested. You wrote:

" the natural flow rate is not much, if any, less than the ESP controlled rate which suggests that the ESP on 6 is not exactly pulling hard."

There are a number of conditions under which a an ESP can trip or 'go down'.

One and two are total failure of the pump itself, or the hardware supplying power / control to it (cables both subsea and subsurface, etc.). Obviously not the case here.

A fault in the surface control systems. Quite a possibility here.

Otherwise, and given ti was reported as a 'trip' rather than a 'failure' (and I'm still amazed that it was even reported in RNS) they usually fall into two categories. 'Underload' and 'overload', both of which are fairly self-explanatory.

If, having followed RNS, the well is capable of naturally producing what's said. should the 'trip' have fallen into either of these categories, I'd suspect it to have been 'underload'. Maybe the watercut ('perched water' ???) in well 6 actually decreasing ???

Though I do suspect a surface control-system fault.

I don't know, have no 'inside information'.

Still amazed that the BoD posted those RNS's, as a last-ditch attempt at painting a negative picture when it was all about a temporary technical glitch which has been resolved.

DC,

"If the warning of a continued decline in production was not just scaremongering the what was the point of installing the ESP’s?"

Ouch ! That's an awkward sort of 64,000-dollar question. I'll try to make my answer (opinion) brief, though may not succeed in that. Naturally I'd welcome connent, criticism, or downright contradiction of what I write by others.

For me, the ESP's are there not simply for 'enhanced production', but equally for well longetivity. Costs more to start with, but ensures no (very expensive, with field production shutdowns workovers) later. 75 percent of 'Series' Landrovers are still on the road, or at least still existent. 98 percent of Auastin Maestros have been 'recycled' and now comprise part of your fridge. That sort of thinking.

The well design is 'landrover-style' good. Tandem ESP's is just for redundency purposes. If one breaks, the other can be used. Never the two at the same time. Just like a cave-diver always has two sets of tanks, regulators, etc.. If one 'goes', he or she can swap over. If not, they're dead.

But why ESP's in the well to start with? Good question. But yet again, it's part of the 'belt and braces' approach from the start. More expensive for sure, but again ensuring a certain well longetivity and lifetime.

Without being unduly negative, almost no oilwell will not see a certain productivity-decline over time. Also, near-wellbore pressures may drop. HOWEVER, one simply cannot extrapolate and say (as the latest CPR tends to) that 'reservoir pressure' has dropped, unless one has another well, some distance away, from which to measure that. And it ain't the case so far on Lancaster, and also Fractured Basement being what it is, a measurement from one well may not reflect overall reservoir pressure.

ESP's also give the operator a lot more 'control' over things. On a well which flows 'naturally', one only really has one control element, which is the surface choke. The well may decide to 'slug' some gas, water, or whatever, and there isn't much to be done about it. Whereas with an ESP in the completion, other than the pump acting as a production-enhancer, it can also act (alongside the choke) as a sort of 'smoother'. As in this case, because they're variable-speed ESP's. This puts the well's behaviour under human control, rather than just that of Mother Nature.

OK, rabbitted on long enough, hope that helps. Time now to go out for a Saturday night drink !

littlened,

"Surely the 2 new directors will now know,if not before, who the Bondholders are.Can they now be disclosed and if not why not?"

I disagree. The directors will not necessarily know who the bondholders are (other than maybe the erstwhile 'ad-hoc committee), and some bonds may be held by proxy, anyway. In my understanding (anyone more knowlegable correct me if I'm wrong), holding bonds is a bit like having a bank-storage box. You might (on renting one) declare to the bank what you're putting in it initially, and use that as colateral against the rental-charge. But you don't have to tell the bank what else you might put into it later. Nor also, what you may be taking out.

"adoubleuk its been completed by stena don if you look at the past tracking it moved off wellhead Thursday "

Furtther thoughts about this. If Lincoln has indeed now been P&A'd, it's yet more suspicious, and rather amazing. Given that an extention had been allowed for that to have been done. Instead of which, it's taken place lickety-split, before management or operational changes could be implemented, and before various board members ran for cover.

To my mind, if the FCA or the Serious Fraud people become involved, it's maybe OGA they should look at first, before the dregs of Hurricane's (now obsolete) BoD.

I've leafed back through the most recent 'CPR' and RNS's. And utterly refuse to believe that a supposed 20 psi pressure-drop seen on the gauges left in the Lincoln well is attribual to drawdown from two wells on Lancaster, 9 kilometres distant, and across a fault which was previously considered to be a 'barrier' between the two fields.

There is something very wrong here, and it smells of a set-up-job conspiracy involving outside parties. Starting not with Dr Trice, but dating from a time when he got chucked out of the very company which he had formed.

In the oilfield, mistakes can be made and wrong decisions taken, and I think that even Dr Trice might have made a few mistakes and made some bad decisions in the past. But at least he kept us informed in that respect, whereas his successor kept his mouth shut as tight as a duck's fundament. Which makes me feel that a lot more 'planned mistakes' have been made over the last 18 months. Passed-off as 'mishaps', but in fact deliberately planned.

I sincerely hope that with the two new directors in place, and most of the other rotten shower resigned, some explanations will be given, once they've had time to 'go through the books'. Which might be difficult and will take time, because documents can be shredded, and with the 'culprits' gone, it'll be hard to make them talk about what they were up to.

schlemiel,

" Hurricane is now once again a viable, solvent and worthy investment of our investment capital?"

I am unable (and unwilling) to give any advice upon that.

However, two or three things are quite clear to see. Hurricane is not currently insolvent, has cash in bank, and further profitable cash inflow to come, via ongoing oil production. Also, assets in hand are seen as that (even by the 'outgoing' BoD) and have future value.

schlemiel,

"There must be documents and information showing the true state of affairs. The entire board defenestrated themselves directly after the Court's judgement knowing they had been exposed and Kerogen's role? Kerogen must be exposed for their role in this stitch up"

Agree 100%.

I have a suspicion, but it it only that. Pure hypothesis. I do not want to be taken to court for libel. But here is my hypothesis.

Kerogen (a while ago) sold about half their shareholding, thereby recouping most of their initial investment, but remaining a major shareholder.

Not long afterwards, during the time that 'the scam' was being hatched, their representative on the board 'resigned'.

Shortly afterwards, the SP completely cratered.

Now (what if, what if ?) Kerogen had moved the monies garnered from selling their shares into buying bonds, instead?

Obviously a bondholder cannot remain on the BoD. Conflict of interest.

Think about it.

'Ad hoc committee?' Yeah, go tell it to the Marines. 'Put up job' might be a better description. Hopefully one day the truth will out, and maybe some people go to prison.

schlemiel

"I bet Bernstein and allies will leave no stone unturned to get to the truth"

No left turn unstoned...

laser,

"adoubleuk its been completed by stena don if you look at the past tracking it moved off wellhead Thursday "

Thanks for the info. Must admit I haven't been looking at 'marinetraffic' for a while. But that was quick. P&A postponed possibly until October, but just done now ? More explanations needed.

senseman,

'aduk is quite the wordsmith when in the mood.."

Depends what mood you catch me in ! :-))

But I do know my oilfield stuff. Don't know too much finance, just blunder my way around the stockmarket, am a demon poker-player, kknow more about photographing offroad truckracing on the planet. Still haven't got the hang of when to buy or sell Hurricane shares, though, and make a real profit.

:-))