Member Info for DiveCentre

What should HUR spend their cash pile on.

Should it be on developing and extending the life of Lancaster. Whilst this has risks, I believe that it will provide a better return than investing elsewhere. Or do they go on a buying spree. If so three questions arise. 1) how much of the current cash pile should they spend. 2) What percentage cash return might they expect to get, and 3) Does HUR have in house the expertise required to identify the best investment opportunities.

Answers please

I have held Admiral for that last ten years and the dividend has increased every year. The yield, including the specials has consistently been 6% or more.
If you strip out the Portal Penguin cash return dividends over the last three years were 2019-140p 2020-156.5p and 2021-187p and if you then calculate yield based on todays closing price it works out as 7.15% for the 2019 dividend,7.99% for the 2020 and 9.55% for the 2021.
In my opinion the market has over reacted to the results of Sabre and Direct line. The sp had already dropped 14% when results were announced on the 3rd March and the explanation can be found in the CFO’s review “We expect that Group profit in 2022 will be lower than 2021 and 2020” see page 8. So if profit falls back to a pre 2020 level then surely the dividend will not be anything less than 2019 dividend which gives a 7.15% yield. Plus there will be the third and final Portal Penguins dividend of 46p to be paid with the next interim in October.
I’m looking forward to the Interim results on the 10th.

Just a thought. Assuming it is a buy it seems most likely that the order was filled or substantially filled yesterday which could explain yesterday’s rise and why the sp has not moved today.

NigWitty

Do no pretend to speak on behalf of long term shareholders. You have no idea what they think or what their objectives are.

Do you remember Sipp?

If the Tory membership choose Truss as leader of their party she will be PM .She is then entitled to choose the cabinet and it is hardy likely that she is going to choose a Chancellor that will oppose a policy she has herself proposed.

"second-quarter adjusted earnings rose to $11.47 billion, above the $11 billion forecast by analysts"

https://www.reuters.com/business/energy/shell-reports-record-profit-115-billion-2022-07-28/

No. It is too far away to tie back to the AM, but the main reason why not is the water cut is very high to make it economic.

Bothwellbuyer

It's underway at the moment. There are 4 vessels attending in preparation for the tow away. Its not because the well is dry. Petrojarl Foinaven is old and knackered.

https://www.offshore-energy.biz/aggrieved-fpso-workers-to-down-tools-over-redundancy-package/

Cebo
Today has been a day of ramping by the day traders. As Malcy implied in his comment why was this not priced in? The mm's hiked the opening price on the RNS and it was like flies to a turd. Almost all of todays posted should be taken with a pinch of salt.

Jimmyg1
Why would they be planning to buy surrounding acreage when they have just given up the licences on Warwick and Lincoln?
For those who have not noticed HUR have now updated the “assets” page on their website to remove Warwick and Lincoln, so quite obviously the joint venture with Spirit is now dead. Remaining assets are Lancaster (P1368 central) and Halifax (P2308).

Thanks Laserdisc
I see she is now en route to Lancaster with ETA of 5.00am tomorrow, draught 9.4m.
Due in Rotterdam on the 26th.

Corbett might be a piece of s**t but at least he is gone. My main beef is with Chaffe. He should have started a programme of buying back bonds in the market during summer 2020 when they were down to something like 30% of par. Instead he sat on his hands and did nothing.
This is a quote from an email sent 18 September 2020 from Richard Bernstein to Steve McTeirnan included as an exhibit to Chaffe’s statement:
“As we conveyed, we expect to see a near immediate buyback of a significant quantity of the bonds. This morning, I checked the price:- 29-30! Tendering for 80% of the bonds at 35 would cost $64.4 million and leave the company with over $40 million of net cash. We urge the board to give an order to buy in stock at 30 on Monday- by the time you discuss it with your broker, the price will rally and cost the company more.”
They then got that letter from Adkin Gump on behalf of the bondholder consortium in September2020 telling them not to spend a penny without their say so. From then on they submitted to the demands of the consortium. On the 1st October Management presented the Board with an Executive Summary “POSSIBLE BUY BACK BY HURRICANE OF BONDS” which concluded with a recommendation against buying either in the market or tendering. The basis for making this recommendation was that they did not want to antagonise the bondholders.
In my opinion this was an incredible mistake. Had they embarked on a bond buying programme in the summer and or autumn of 2020 they could now have $200m free cash in the bank in stead of $85m. More than enough for further work on Lancaster or even possibly saving the Lincoln/Warwick licences
So what is the point of all this, its history, water under the bridge. The point is that management still consists of just Maris and Chaffe when decisions have to be made on how to spend the funds now available and I do not have confidence in Chaffe’s ability to make the right decisions.

British

Read this thread.

haggis_trap

Crystal Amber will not be able to sell off their holding piecemeal in the market. They could have to disclose holding reductions and it would crash the SP. They will have to do a placing, If you remember Kerogen sold off 25% of their holding with a placing. The only question is when, and I doubt that now is the right time.

Gazelleman

"Did anyone see or speak to Richard B of CRS? Was he there or absent. I wonder."

A very pertinent question, or have CRS been wall crossed.

The one and only positive is that a decision on drilling P8 will be made this summer.

Unless the Board are living on another planet, they must be aware they will be faced with a deluge of questions tomorrow which in the main can be summed up with three words:

What’s the Plan?

Do they intend to fob us off with if’s, but’s and maybe’s or are they are going to give some concrete answers because if the latter that raises the matter of price sensitive information. As such information must be announced to the market rather than to the limited audience attending an AGM, they will have to put it out via an RNS. So will we get an RNS tomorrow? If not don’t expect any positive answers.

Given that they must now have a considerable amount of data on Lancaster has management formulated a plan to extend the life of the field, and in particular:
1 Will that include the drilling of another producer well?
2 Do they expect to have to pressure inject and if so will it be gas or water?
3 What is the prospect of connecting to the WOS gas pipeline, and what will this cost, and if not will the continued gas flaring risk extended production.

The bond redemption date is 24th July. If an announcement is to be made why delay it until August. Given the grief that has been caused by the failed restructuring plan I personally think the Company have a duty to make an announcement by close on the 24th.
As far as the AGM is concerned the one blaring question is “WHAT IS THE PLAN” and if management have half a brain they should expect this to be asked. Further more they ought to make a preemptive announcement prior to the AGM as it would be difficult to give a meaningfull answer that could be considered price sensitive to the limited audience at the AGM.

I attended the two AGM’s prior to the covid pandemic but unfortunately circumstances prevent me from attending this year. Is there anyone who plans to attend? Also if you are attending what question or questions would you like answers to.

For me the most important unanswered question is what they plan to do with Lancaster and the remaining licence areas. If you visit the Companies’ website and navigate to Business model and strategy it says “Hurricane’s strategy is to create shareholder value through monetising the reserves and resources associated with naturally fractured basement reservoirs within its portfolio .” and I would like to know if this still holds true because they have still not come up with a plan and they have had plenty of time.

Suggestions please for questions to ask.