Member Info for Andy144

A bit off topic...

Interesting to note that bitcoin, gold and silver have rallied in the last few days. Some of the few assets which the government cannot control or banks cannot steal. I think (as I have mentioned before) that the monetary world will be a different one within 5 -10 years.
I don't have a lot of crypto compared to other assets but holding some is getting a bit more compelling - as the banks start to fail, where do the rich put their currency?

Other banks? No.
Stock market? looking shakey.
Property? Ditto.
Gold & Silver? Possibly
Cash? Could wait it out and buy back in to the market but purchasing power might be destroyed.

I have been buying more DEC on the way down and stopped sub 95p. Looks quite oversold and as one poster rightly pointed out, it rarely stays under £1 for long. Barring poor results, we should get a bounce. Unfortunately, i'm now overweight in DEC and recent purchases will be sold should there be a correction upwards.

AIMHO

It's following a fairly standard pattern of recent days. Rises and then drips down.

Pro - indeed there is no guarantee. The well may collapse tomorrow. But the company will not delist after the 4p div is made:

The board of Hurricane will declare a further Special Dividend, the Supplementary Dividend, of up to 1.87 pence per share (£37.2 million), at any point before the Scheme Effective Date, and conditional on the Scheme becoming Effective.

My point was that, and it was in my first line, at face value some II's might well like that risk, and this might hopefully jog the share price up.

Are they due to delist on the dividend day?

Pro.

I think it's probably fair to say that CA will not sign off on this if they had any doubts about getting the full dividend.

Yes indeed, that is the gamble.

If you take the deal at face value, 1p a share may get you 6p+ a share in income over the next 3 years. It might well be that II's will see this as a good deal. However, we don't have long to make that choice. If the SP does not climb then holders who bought in high will be locked into the deal as you cannot sell the payment coupons from prax. I think it is quite likely that the SP will climb, slowly, as the decision date arrives. Once the first 4p dividend is paid, the SP will be about 3p, making is a more compelling buy to II's willing to take the risk.

AIMHO

I have stopped buying as there is no bottom. The market cares not about the dividend. Better to wait for a concerted multiday rise and miss the bottom. Too many false dawns.

I think this is possibly the first takover I have ever seen where the SP goes lower. Very close now....what's the volume anyone?

Just up 3p and did not spike at all first thing. As of writing Hur up 4% and CA up 3%. That about says it all. The SP might well end down today.

The Deferred Consideration Units provide a way for Hurricane Shareholders to share in the future success of Hurricane, with 17.5 per cent. of future Net Revenues being paid to Deferred Consideration Unitholders biannually. This allows Hurricane Shareholders to benefit from ongoing production, gaining exposure to production outperformance, higher oil prices and most importantly, future acquisitions.

The important bit is...revenues. so 17.5% of revenues paid (i.e not profits)

In an orderly wind down of the business, Hurricane expects to pay for the ongoing costs of the business and the decommissioning of the wells and facilities, and return all of Hurricane's remaining cash and cash from operations to Hurricane Shareholders, with the last payment expected to be in 2026. In aggregate, the Special Dividends and Cash Consideration under the Acquisition total 6.02 pence per share, which, together with the 17.5% share of future Net Revenues directly from the Lancaster field, is greater than the sums that the Directors expect to be able to return to shareholders in an orderly wind down of the business, assuming that the oil price is US$80/bbl from now until COP.

The expected cash return to Hurricane Shareholders is expected to be thus significantly quicker and, based on current oil prices, materially higher, before taking into account the potential risk from an unplanned cessation of production or a reduction in the oil price.

Because you are going to get 6p a share with no guarnatee of anything else. The market is not going to value this much more until it has further hard details

Are they actually giving anything for HUR?

I will "buy" the company. Give you all the cash it already has as a payoff and then bank the production profits. Everyone happy with that? Good....I'll make the call.

They have their own refinary so that's why they want it. Deal paid by HUR's own money. What a deal. Moronis and Co will probably stay on.

just pumping oil? HUR has daily income of about $500k (declining, yes) and cash of about 6p a share. Arn't oil co's SUPPOSED to pump oil? Just pay the 6p out as a divi and pay 1/4 year divi's on the income until it runs dry. I don't understand what this deal does for anyone. Do we now all have to be stuck in this basket case to get our payouts...if they come?

Which goes to show what a nonsense this all is. SP will probably end the day down

I totally agree it's a terrible deal. But we have waited since Novemeber and this is the best they can come up with? Suggests to me that there isn't much interest. I would love to be wrong.

I think it's a done deal. Very unlikely that another party will bid. Both big II's have recommended it.

I think CA have forced HUR into this ****ty deal so they can get out. I guess no other party was interested.