Member Info for DiveCentre

NGR1919
I’m sure you are well aware that both wells have dual ESP’s installed. For the thicko’s that means that each well has two pumps. The Company have given no information on the individual use of the pumps so we do not know if they are running one only or alternating.

RNS 08/10/20 Current production is c.14,500 bopd on natural flow.

RNS 18/12/20 The 205/21a-6 well is currently producing at c.12,300 bopd on artificial lift.

RNS 10/06/21 On 8 June 2021, the electric submersible pump ("ESP") in the P6 well tripped causing the well to be shut in. The well is currently on natural flow while the cause of the trip is investigated and the ESP's electrical system is tested ahead of an attempt to restart the ESP.

RNS 11/06/21 On 10 June 2021, the Company announced that the electric submersible pump ("ESP") in the 205/21a-6 ("P6") well had tripped on 8 June 2021, causing the well to be temporarily shut in on precautionary grounds prior to restarting the well on natural flow while the cause of the trip was investigated. While these investigations continue and ahead of an attempt to restart the P6 well ESP, the Company has decided to maintain the P6 well on natural flow at a rate of 9,000 - 11,000 bopd subject to surface conditions and settings in order to fulfil the minimum lifting quantity for the next Lancaster lifting which is scheduled for the week commencing 14 June 2021. Further updates will be given in due course.

RNS 16/06/21 Further to the announcements on 10 and 11 June 2021, the Company is pleased to announce that it has successfully restarted the electric submersible pump in the Lancaster 205/21a-6 ("P6") well.

What this tells us is that the ESP in 6 was not used until sometime between 08/10/20 and 1812/20. When in June 2020 it tripped out the well continued to produce under natural flow and the ESP was subsequently restarted. The Company has not reported any failure of the ESP prior to 10/06/21 and subsequent to the restarting they have said nothing to suggest that one or other of the pair of pumps has suffered a critical failure.
Anyone claiming or suggesting they are now relying on one pump is lying and scaremongering.

Fred -Bloggs
You seem intent on painting a dire picture.
Yes one of the pumps tripped and the issue was resolved. Whilst offline the well continued to flow at a slightly reduced rate. As to an earlier failure I have no recollection of this. If you can back up that claim please give the date of the RNS advising of the failure or a reliable source.

Shell pulled out of Cambo citing the investment case:
"The economic case for investment in this project is not strong enough at this time, as well as having the potential for delays. However, continued investment in oil and gas in the UK remains critical to the country's energy security. We believe the North Sea - and Shell in it - has a critical role to play in the UK's energy mix, supporting the jobs and skills to enable a smooth transition to Britain's low-carbon future."

It's impossible to know if they are interested in Buchan but if Shell are true to their word and continue to invest in North Sea oil it has to be seen as a positive if only because it will increase the pool of funding looking for projects to invest in.

fandg2
It was 8.9m. From what has been said previously by HUR they have to have an adequate load which appears to be at least 500k

Given the market scare due to the Omicron variant I am pleased but nevertheless somewhat puzzled with today’s rise. Interested to hear other thoughts and opinions.

On Friday night — just three days after scientists in Botswana published the genetic sequence for the new virus — Moderna announced it was already preparing an Omicron-specific booster vaccine. Pfizer is ready to do the same.

The Strategic Reserve was created in 1975 as an insurance against supply disruption following the 1973/4 oil embargo. Using the reserve to manipulate the price of oil was not the intended purpose and given that reserves are finite it will ultimately fail.

It smacks of desperation.

From the Times;
"The United States is releasing 50 million barrels from its oil reserves as part of an unprecedented bid by the world’s leading consumer nations to combat escalating energy prices."
Also worth reading Malcy's Blog.
https://www.malcysblog.com/2021/11/oil-price-petrotal-uog-jadestone-president-block-pharos-and-finally/

Poo looks set to rise.

Abatt1
" Boris and his gang do something right for a change."
It's not so much doing something right, more like not signing up for economic suicide.

It is not too difficult to understand why the BoD have not come out with a forward plan. The current objective is to accumulate sufficient cash to clear the bonds plus the interest payable up to the redemption date. If beforehand they committed funds by, for example booking a rig they run the risk of having the bondholders (the adhoc group) instigating action. For the same reason they cannot commit to a new fixed contract with Bluewater. I have no doubt that the Wright, Craik and Wolfe are fully engaged on a forward plan but they can only commit to it, and make a public announcement when the Company has sufficient cash not committed to current liabilities.
Whilst the restructuring plan was ruinous for shareholders from the Company survival view rollover of the debt would have allowed them to commit to a work programme this year. In the event the well performance has held up much better than was forecast 12 months ago, and we just have to be patient and hope that the minimal production decline rate remains at a constant.
When they have sufficient cash to tell the bondholders where to go, they should also be free to embark on alternative funding arrangements which will then allow them to commit to a forward plan without having to wait to build up a cash reserve.
“Whilst there remains uncertainty if the Company will have sufficient net free cash to repay the Convertible Bonds, the board of directors are optimistic that even if a shortfall remains it may be possible to bridge the gap”
If they are sufficiently optimistic that bridging finance can be obtained to fund a shortfall in the bond repayment then logic suggests that once they are in a position to repay the bonds, they should also be confident in the ability to get advance funding for a forward plan.
So, I’m not expecting any imminent news on a forward plan or the Bluewater contract. Offload intervals need to be watched along with the production updates but hopefully by February or March next year there could be the much waited for announcement.

Ghengis 15
You question the posters belief in man-made climate change

Before Darwin you either believed in God or you were a heretic. It is now very much the same with man-made climate change, because if you don’t believe in it you are denounced as a heretic and it stifles debate. The problem we have is that there is now a vast economy built on renewables and it is in the interests of those promoting that economy to push the climate change agenda for their own benefit. It has been popularised by the expression “saving the plant” and everyone is expected to do their bit, (although it does not seem to apply to the rich and famous who all fly into Glasgow in their private jets).
The question no one is asking is can “the planet” be saved because there is no debate as to whether it is a natural occurrence, man-made, or a combination of both, and furthermore whether there a realistic possibility that carbon dioxide emissions can be substantially reduced quickly enough to arrest the change; if it is indeed man-made. There is also no discussion on world-wide population control because that is according to perceived wisdom the primary factor? For so long as the world is made up of individual states with competing interests the likelihood is that world-wide emissions will continue unabated and the world population will continue to grow. Any country that rushes headlong towards zero emissions will put itself at a massive economic disadvantage.
Politicians must stop emulating Canute and start looking at how we deal with the consequences because eventually there will be a world war.

RG27

“I wouldn't know for certain, but should the directors be accused of and found to be involved in a criminal act would not any directors liability insurance be invalid as far as an insurance company is concerned?”
Yes this is my understanding and for this reason it is preferable that the case made against the former directors is negligence rather than fraud.

NGR1616
This is a high-risk investment and you have to be an idiot not to realize it. There is no certainty as to how the reservoir will continue to perform and therefore whether the Company will succeed or fail. At this point in time the prospect of paying of the Bondholders is looking good. If the oil price remains at present levels there is the prospect of funding further work to at least maintain if not enhance production rates. It is of course also dependant on a gradual drop off in production instead of a rapid decline, and yes there is the matter of OGA consent re gas, but there is still the possibility.
You appear to have a motive to see this Company fail which is malice related rather than investment related.
Do not pretend that you are here to save the ill informed investor.

Mirasol

“This is something everyone should keep in mind - HUR are totally exposed to a single well, a single pump, a single FPSO”

Thank you for reminding me. It really was stupid of me to forget.

But in fact you are wrong on one point as it is not a single pump. The well has a dual redundant downhole Electric Submersible Pump.
https://www.hurricaneenergy.com/application/files/4615/4210/4673/Hurricane_Lancaster_CPR_2May17_Issued.pdf
see page 43.

Multiple account.

I am very much looking forward to John Wrights statement in the Interims tomorrow and what vision he has for the future. Also how it compares with that of Maris.

I have raised this question previously. It can easily be founds with a quick trawl through my posts.
When HUR and Spirit were planning a tie in from Lincoln and Warwick it was a requirement of the OGA that they exported gas via the WOSP. It must therefore be possible for the AM to be upgraded for gas export. The nearest connection to the WOSP is Foinaven and the FPSO Petrojarl Foinaven has now ceased production leaving a redundant pipeline.
https://www.offshore-technology.com/news/bp-retire-petrojarl-foinaven-fpso/
I would hope that HUR are in discussions with BP about access to the pipeline and ensuring that it remains in place if the field is decommisioned. The other issue apart from the profitability of gas export is the OGA’s attitude regarding the continuation of flaring given the green agenda.

12.3 from 8.2 looks like a good load, Certainly 500k+.

Winalot

I think $55 is rather optimistic. Probably more like $50 but that is still enough to generate sufficient free cash to clear the bonds well before the due date. These are my calculations:
According to the last financial update (17.09.21) they had $144m free cash as at 31.08.21. This will be reduced by $62m for the bond offer, leaving $82m. The bonds have been reduced by 34% leaving $152m outstanding so they need additional free cash of $70m to clear the debt.
If you assume daily production at 10k with $50 profit per barrel that is $0.5m per day which requires 140 days production to produce sufficient cash to pay off the bond holders. Given that the time scale starts at the end of August this means that they should meet the target amount by the end of January 2022.
The most significant point is that with the prospect of paying off the bond holders and generating additional free cash from the end of January 2022 there is a reasonable possibility that they can commit to a 2022 program to remedy the reservoir issues and at least maintain if not increase production.

And the rest! It's now over $82 and rising.