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cat 5

I wouldn’t say they both spoke clearly. Chaffe was spoke clearly but Maris is not a confident speaker and not always that easy to understand. Chaffe’s upbeat tone when talking about the bond repurchase almost made me choke. After the wasted costs of the restructuring plan, legal and administrative, they have probably saved £10m to £12m. They could have saved at least £50m and possibly up to £100m if they had started buying before September 2020. The CB’s were massively discounted at that time but it was only in September that Management chose to analyse the situation and made a recommendation to the board not to proceed with a buyback. My emails to the Company about this were ignored and in my opinion Chaffe is responsible.

The date has been announced in a recent RNS and the clue is in the RNS title.
Enquiries such as this indicate a total lack of research which begs the question “are you a serious investor”.

The figures have been taken from page 32 of the new CPR but they have made a mistake by not taking account of the header (NPV (10) $MM) which applies a factor of 10 to the figures shown in the row. Another example of sloppy journalism and you have to ask why this is a story when updating your decommissioning plan is a commonplace event.

daltry
In case you have forgotten Bernstein said they would not call for Maris and Chaffe to resign as it would put the aim listing at risk.
See CRS’s RNS 30.06.2021:
“In relation to the current Executive Directors - Mr Maris and Mr Chaffe - whilst Crystal Amber continues to have serious concerns as to their suitability and performance, it was not seeking their removal at the general meeting scheduled for 5 July 2021. This was to ensure continuity with the proposed incoming Non-Executive Directors. Market participants would have seen from Hurricane's announcement of the result of the sanction hearing an assertion that in the event the Executive Directors were removed from the Board at the AGM today, the Company's Nominated Adviser was likely to resign with immediate effect. As a consequence, this would have resulted in the shares of the company being suspended from trading”

As far as I am aware nothing has changed that would alleviate this risk and whilst voting them off will send a message they would have to be reappointed. You can be sure they are going to get a pretty frosty reception at the AGM.

Personally, I would like to see Chaffe go because in my opinion he was the architect of the restructuring scheme and not only that he could have been buying Bonds in the market when they were heavily discounted and before they were put on notice of the bondholder’s threats. Maris is far from ideal as a CEO but he is supposed to have experience with the geology, but before either are given their marching orders suitable replacements need to be found and that I think is up to Mr Bernstein.

Concluding his comment in the last RNS Maris said “while we also focus on the Company's next steps.”. I have to say I was quite disappointed at this rather vague statement.
Maris has had plenty of time to formulate a plan and whilst previously the bond repayment issue prevented financial commitments that is now no longer the case. So please Mr Maris tell us what the plan is.

dflynch

I thought the same until I reread the terms of the CB offer.
The relevant paragraph is:

“The Company will have the option to redeem all, but not some only, of the outstanding Bonds: • at any time on or after 14 August 2020 at par plus accrued interest if the value of the Ordinary Shares underlying a Bond (calculated over a specified period) shall have been at least US$300,000;
and at any time, if 85 per cent. or more of the aggregate Principal Amount of the Bonds originally issued shall have been previously converted, redeemed, or purchased and cancelled (the “Clean-up Call”).”
The second paragraph will not apply so it down to the share price condition. The value the share price needs to have attained to meet this condition is around 42p, which it has previously, but not at the present time . It also says calculated over a specified period so what is the duration of the period and does the clean up call need to be made within the period? As with other aspects of the CB’s this is not clear because the specified period has not been mentioned in the publicly available documents.
You have to remember that when the offer was made the then BoD thought the share price would be way over the 42p price condition which would result in the bondholders choosing to convert rather than accept redemption. The clean up call was intended as a means by which the company could pre-empt conversion and avoid having to issue more ordinary shares.
If the clean up call is available to them then clearly it should have been exercised as soon as they had sufficient cash in order to save the last 3 months interest, and I would have expected them to do this as soon as BP’s payment for the last offload reached their bank account. And if they have redeemed would that not merit an immediate RNS.

Goldenbadger1

I will be pleasantly surprised if it is this week but I am inclined to expect it next week based on previous timing. Last month it was on the 18th and the three previous on the 16th.
Of more interest to me is content rather than timing. I really hope we have something more than the production figures and a basic finance report and that they spell out they are now in a position to repay the bonds. If they cannot force early repayment then set aside the balance due plus interest in escrow and they can declare themselves to be effectively debt free.
Given that they should now be building a cash reserve shareholders are entitled to know what they plan to do with it, and if for whatever reason they cannot reveal the plan now then at least say “we are formulating a plan and details will be made known shortly”.
Interested to hear views and speculation on what the plan will be and the likelihood that there will be a drilling campaign this year bearing in mind the new advance funding agreement with BP.

Good to see the sp hold on and in fact continue to rise towards close. I was rather expecting the usual “traders take profits” drop off.
Of course what really matters is that RNS I’m still holding on for.

Have to say the sp performance over the last week is very reassuring and I put it down to a rise in confidence in the company rather than the price of oil. With the prospect of more news on the way it should hopefully remain in double figures.

Shame this board has become infested with scum.

They only sold their Norwegian assets. Spirit Energy continues to hold its UK north sea assets including its 50% interest in GWA.

Rangers1
I have only just read your post. I think it should be obvious to any followers of HUR that they are planning a drilling campaign asap and almost certainly this year. What other reason would they have to get cash in advance?
In my post to which you refer I said “I was hoping that it might have been picked up by the wider press and it is a little disappointing there has been nothing.” and frankly I am amazed that something which begs the question WHAT DO THEY WANT THE CASH FOR has received virtually no attention.
I don’t think there can be any doubt HUR have been working on a plan but there has not previously been much else they could say until in a position to finance it. Now they are and the next step is to book a rig.
On the question of rig availability Transocean’s last report advises both Transocean Leader and Henry Goodrich are stacked. You might also read the post by Cebo-456 on17/03 “so maybe keep an eye on Diamond Drilling Rigs (they have a couple warm stacked) including, from memory, the Great-White which they will want working, even at a reduced rate. Or more likely Hur will get a slot for a floater already mobilising to the North Sea on a different contract - Island Inovator for example”
So personally, I think we are due news on the plan within the next month and possibly at the next monthly update mid April. The next question is will it be Lincoln or Lancaster and this is interesting because any work on Lincoln will require Spirits’ financial participation unless HUR are willing and able to fully fund it themselves. There is also the matter of licence obligations.
It is also worth reflecting on what the agreement says about BP’s confidence in Lancaster production because it is difficult to imagine they would have entered into the agreement if they had any cause to imagine production was about to fall of a cliff.

correction:
speculated on what it could mean

sensman

I chose not to reference the Energy Voice article because of the very first word "troubled" to describe the Company; and it added nothing to the RNS.

I was hoping that it might have been picked up by the wider press and it is a little disappointing there has been nothing. A decent journalist should have picked up on the new advance payment agreement with BP and questioned the purpose of it and perhaps speculated on it could mean.

0161
I fully agree, otherwise what is the point of the cash flow deal, but why did this RNS not provide at least a some indication that plans are progressing?

cat5

"I would have thought with $50/$80m available by July that a future plan of works should be in the system?"

Gross negligence if they are not working on a plan and if they are it is about time shareholders were given some idea of what the plan is.

It should be noted that NOW Wilhelmshaven have revised the load information for Petronordic to 70000mt which is more realistic and equates to 527417 barrels, and in line with recent offloads.

The Fionaven water cut is very high, and far too much to be viable for the AM to handle given its maximum liquid volume handling capacity. The main point of interest to HUR is that Fionaven is the nearest for a connection to the WOS gas pipeline.

Shell is reconsidering its recent decision to pull out from the Cambo oil field.

Brent now touching $117.
From the RNS 17/01/22:
“Given our current prediction of performance and assuming oil prices continue to be within the range experienced over the past month, we believe that post clearing our bond debt Hurricane will have between $8-38 million of net free cash at the end of July 2022.”
This estimate of free cash is now looking wildly inaccurate in light of the current oil price and in my opinion it would be remiss of the Company not to issue a revision in their next update.
With another two offloads, end May and end July/ early August they ought to have enough free cash to fund a remedial program. They must have plans in place and shareholders are entitled to know.