Member Info for DiveCentre

Albie
Management have decided not to drill P8 because of the risk they will not get flaring consent. In my opinion they would never have got a cast iron guarantee from the NSTA. It is possible that the decision not drill has been influenced by CA given the reference in the RNS on 2/11: “However, Crystal Amber Fund Limited, which holds 28.9 per cent. of the Company's shares and is the Company's largest shareholder, has indicated to the Board its desire to monetise the value of its shareholding.”
I have no doubt that any buyer of the Company will start drilling just as soon as they can get a rig.

senseman

HUR's cash will be held in a dollar account.

Mirasol
I think long term holders are well aware of the history.
To say “lot of NSTA technical staff didn’t believe Trice” is speculation. We know about Pye but I am not aware of any other non-believing NSTA staff. There may have been others but if there were they have not gone public. However I have a suspicion that someone in the OGA (as it was then) started posting on lemon fool either personally or via an accomplice claims about the O/W contact depth being significantly higher. Figures were mentioned which turned out to be very close to those given in the Technical Review.

“The informal feedback from the NSTA during the six months of interaction was that, even where there is no technical and economically viable solution to mitigate the emissions that is reasonable in the circumstances, then the NSTA still may or may not grant the consents when requested even if positive support from OPRED was forthcoming.”

What else could the NSTA say other than giving an unequivocal yes or no.

You have to remember that because production is now below the bubble point Hurricane is subject to rolling and declining three-monthly production, flare and vent consents under an amendment to the originally approved development plan which allowed flaring as the approved gas disposal mechanism. Given this I suggest that expecting the NSTA to give an unequivocal yes to future flaring was unrealistic.
To say that the NSTA would not give comfort is like saying they were expecting a nod and a wink. So did they get half a nod and half a wink or just a quarter of nod and a quarter of a wink.

In my opinion management have erred too far on the side of caution. They should have gone ahead with drilling P8 and then argued the case for further flaring consents and I rather suspect that if HUR is sold the buyer will do exactly this.

Apologies, wrong link!

Try this:
https://www.hurricaneenergy.com/protected_file/712

The announcement document is now up on the website
https://www.hurricaneenergy.com/protected_file/715

If you are not an ft subscriber try this:
https://publicnewstime.com/market-news/ithaca-oil-and-gas-explorer-is-making-big-promises-from-little-britain/

Let’s assume for the sake of argument that HUR is sold. I am not going to speculate on sale price, my question is what will the buyer do with their newly acquired asset. Maris & Co have made a decision not to drill P8 and it is clear that if unsold they will continue to run P6 until such time as it becomes uneconomic.
So would a buyer do the same or might they just be a bit entrepreneurial and do some drilling. If a new well is successful they can go to the NSTA who will then have to decide to be obtuse idiots or not.
I rather think that unlike our bunch of eunuchs a buyer will be drilling.

Another matter is the Halifax licence. In the Half Year Results (30/09/2022) they said it would be relinquished.

“In addition, in September 2022 the Company determined that the costs required to further evaluate the Halifax licence (P2308) and the low likelihood of a successful economic development means that the right next step is to relinquish the licence.”

Given that they are now offering up the Company for sale surely it would be better to maintain the licence to enhance the asset value.

Alibi
Shares held in an ISA will not be subject to tax either on gains or dividends, and the same applies for shares held in a SIPP. For shares held in a trading account the dividend will be liable for dividend tax which is 8,75% on dividend income over £2,000.

Mals1960 when you say the old BoD I assume you mean the BoD prior to the ousting of the Neds but after RT’s resignation. You are correct in saying water injection was mentioned. It was in the Half-year Results 2020 & Technical Update(RNS 11/12/2020)

“Work continues on a possible 2021 activity programme for Lancaster, including the provision of pressure support via water injection, improved recovery from the existing EPS wells and evaluation of the onlapping sandstones. This planning is expected to be finalised before the end of 2020.”

And again in the Operational and Technical Update (RNS 18/12/2020)

“While several development options continue to be evaluated, a side-track of the existing 205/21a-7z well to an up-dip oil producer location could increase oil production from late 2021. This could be followed by a water injection well in the northwest of the Lancaster field, which, with related FPSO and subsea work, could provide pressure support and sweep oil within the onlapping sandstone reservoirs towards the producing wells from late 2022.”

I am not an oilfield expert so I cannot comment on the merits or otherwise of water injection but I do remember adoubleuk commented at the time expressing his opinion that it was not a good idea.

What has not been mentioned by current Management or discussed on this board is the possibility of gas reinjection. It was suggested by Trice as a possible option for development of Lancaster post EPS as an alternative to flaring although he referred to it as the least favoured option because it would interfere with data collection. Given that prolonging field life is now rather more important than data collection I find it annoying that Management have said nothing about gas reinjection as a means of gas disposal and the cost of this as compared to connection to the WOSPL

To answer the question posed in this thread:

There should be an Operational and Financial Update in the 2nd or 3rd week of November. and although the Company is unlikely to report on it there should be another offload in the 1st or possibly 2nd week of December.

senseman

https://cbonds.com/bonds/326067/

Members can draw their own conclusions

The minimum block or tranche size for the Convertible Bonds was $200,000 par value. It would not have been possible to trade or transfer any quantities less than this amount.

"two"
of course that should read three.

The times article:

https://www.thetimes.co.uk/article/ithacas-odyssey-is-set-to-bring-it-to-the-stock-market-and-the-ftse-100-29svjtztl

Given that JOG has two former Ithaca directors it is reasonable to speculate on Ithaca being one of the interested parties and now Ithaca are looking to raise cash with an IPO. To what end?

"What's holders hope what happens next here?"

Answer1: the SP will go up.

Answer2: the SP will go down.

Guess which.

Just because Bernstein needs a takeover does not mean it will happen. He can push as much as he likes but no one is going to make an offer just to do Bernstein a favour. If there are any interested parties all he can do is to try and persuade the Board to make a positive recommendation of acceptance. Of course the interested party will be fully aware of this so the premium on the current sp will be minimal.

It is hard to see quite where Hurricane goes from here, this report tells us nothing nor did the con call on Friday, given what an east job the treasury had it is hard to understand that the figures came in on deadline day and friday, perhaps travelling under the radar is catching.

Hurricane’s previous run-in with the regulator was put down to the last management team, it seems that the current team make them look like diplomats and It is hard to see quite where Hurricane goes from here, this report tells us nothing nor did the con call on Friday, given what an east job the treasury had it is hard to understand that the figures came in on deadline day and friday, perhaps travelling under the radar is catching.

Hurricane’s previous run-in with the regulator was put down to the last management team, it seems that the current team make them look like diplomats and it is quite astonishing that in a hostile environment with the NSTA can continue when Government departments are trying to get companies like Hurricane to up their production.

Hurricane are debt free having paid off the convertible and with the cash being thrown off something rotten and should be £100m by Christmas and another £250m next year there must be a queue of suitors after all people wanted Capricorn’s cash, maybe Tullow should buy it……………

Hurricane are looking like a wallet left on a table at an international pick pockets convention and the shareholders are being treated like second class citizens…

Who on earth could live in a house like this…?

Hurricane are debt free having paid off the convertible and with the cash being thrown off something rotten and should be £100m by Christmas and another £250m next year there must be a queue of suitors after all people wanted Capricorn’s cash, maybe Tullow should buy it……………

Hurricane are looking like a wallet left on a table at an international pick pockets convention and the shareholders are being treated like second class citizens…

Who on earth could live in a house like this…?

"it is quite astonishing that in a hostile environment with the NSTA can continue when Government departments are trying to get companies like Hurricane to up their production. "

Exactly. it beggar's belief.

Business model and strategy
Hurricane is an AIM-listed, UK-based oil exploration and production company focussed on naturally fractured basement reservoirs.
Strategy
Hurricane’s strategy is to create shareholder value through monetising the reserves and resources associated with naturally fractured basement reservoirs within its portfolio

Does this remain true?
The one thing Maris and Co are good at is giving up our licenses.

"Interesting that Malcy didn't update today."

That spoke volumes, if you know what I mean.