Member Info for DiveCentre

"they are guilty of insider trading and no better than the rest."
NGR1616
Who are "the rest"?

schlemiel
Included in the exhibit to Chaffe’s statement (Chaffe3) is an email from Hurricane Communications replying to a question about Kerogen being bondholders. It states: “Kerogen has authorised us to confirm that they do not hold any of Hurricane Energy’s Convertible Bonds.”
Do they hold via a proxy? I don’t know but their position on this is a mystery. When you look at the shareholder vote on the restructuring only 32.87% of the issued share capital voted, almost half of which would have been CA. Unless you accept that only 3% of remaining shareholders voted then it rather suggests Kerogen abstained. Why?

aboubleuk

Thanks for your reply. The reason I asked about the ESP’s is because one of the arguments for the restructuring plan is a projected decline in production. We know that the ESP’s were started up because of the problem with irregularity of the natural flow but this does not necessarily mean the ESP’s were installed for that purpose. I always assumed they were put in to at least maintain, if not boost flow in the event of a drop of in the natural flow rate, and this is what was predicted in the 16/06 RNS “Thereafter, oil production from the P6 well is expected to continue declining.”
The 10/06 RNS advising of the trip declared production as of 07/06 at 11020 bopd with a 31% watercut and the next on 11/06 advised a natural flow rate of 9000 – 11000 bopd so the natural flow rate is not much, if any, less than the ESP controlled rate which suggests that the ESP on 6 is not exactly pulling hard.
If the warning of a continued decline in production was not just scaremongering the what was the point of installing the ESP’s?

adoubleuk
I seem to remember a comment from some time ago which indicated that redrilling a P&A’d well was difficult but not impossible.
However for the present they need to concentrate on Lancaster so here is a question for you:
The ESP’s were initially turned on to regulate flow because of a flow irregularity, and thus were not being used to increase production. Following the recently reported trip the natural flow rate was hardly much less than the ESP controlled flow rate, so my question is how much might they be able to turn up the ESP’s to increase production rates.

lasedisc

Lets hope that that plug can be drilled out in due course.

laserdisc
I think the blocks are $200.000 at par but stand to be corrected, But if I'm right the 50% discount would mean you could purchase a single block for about £72.3k and you would be getting 15% interest. So that would be nearly £11k in interest plus a 100% profit in 12 months assuming HUR has the cash.

dflynch

The CB’s are listed on the International Stock Exchange and you would have to engage a trading member to act for you.
https://www.tisegroup.com/market/trading/

https://www.reuters.com/world/middle-east/oil-drifts-sideways-ahead-opec-meeting-2021-07-01/

If the market is to be unblocked that means that there is a market. Don’t forget that having been traded some holders will have acquired their CB’s at a discount of anything up to 70% and will therefore be able to sell at a profit. I take it as a signal that HUR intend to start buying and it’s long overdue.

RB chose not to kick out AM and RC for the reasons stated in his requisition notice. It was sensible and I can only say now that it was a matter of concern to me that if all the Board had been voted out it could have had adverse consequences for the Company's status as a listed Company. The fact that the CEO and CFO were re-elected can only be due to CA’s vote. However, it is quite apparent from the notice that their days are numbered. I do hope that a replacement for Chaffe is found and appointed as soon as possible because the Company needs someone to stand up to the Bondholders who I am sure will continue to fight for control of the Company. It is quite apparent that this group of Bondholders sensed the opportunity to acquire the Company back in September last year. This from Akin Gump’s letter 23/09/2020 is a very clear threat:

“It is now likely that the Company is in the ‘zone of insolvency’ such that it must now prioritise the interests of creditors rather than shareholders. We would like to remind the directors that in order to discharge their duties they must fully consider all options available to the Company and pursue the route which will maximise recoveries for creditors rather than shareholders. In the meantime, members of the Group should not to take any steps that involve making or committing to significant financial outlays outside of the ordinary course of daily business.”

This threat obviously impacted on the Boards thinking as it explains the failure to follow up with a plan to manage the reservoir. Given the low oil price at the time it appears that the Board allowed the Bondholders to dictate terms which at that time may have had some merit. The problem is that in doing so they became subservient to the Bondholders and tied to a scheme which no longer has merit given the improving oil price. It is easy to make allegations of corruption but not to prove them. Whilst the possibility of corruption cannot be ruled out the best interpretation is that the Board and Chaffe in particular have been cowed into a position of submission and lost sight of their obligation to shareholders. Nothing was done to review the scheme in light of the improving oil price and they just stuck doggedly to plan A. Given that Chaffe together with the Bondholders was the architect of this scheme he is in no position to now reverse roles and stand up to what will be a continuing assault by the Bondholders. He must go as soon as possible and be replaced with someone who has a pair.

Mr Wilks

If this money had not been wasted and if they had bought a modest amount of the CB's in the market at their discounted price then they could have been looking at a circa 30m saving on redemption. I hope the new board review the decision not to buy in the market and start doing something positive to save the Company.
I urge anyone who has a real interest in HUR to read Chaffe3 in its entirety.

adoubleuk

The 17m, (and it's $ not £) is confirmed in an email reply to a shareholder. A copy of the redacted email is included as an exhibit to Chaffe3

Urraca

It’s on the Company website. The page comes up with Proposed Financial Restructuring. Click on Documents and it’s top of the list.

I don't know whether to laugh or cry.

Goldenbadger
“Well done All on today’s result and especially the Shareholders who spoke at the court case”
I second that and particularly the fact that there were 3 individual shareholders who were prepared to do the groundwork and present decent arguments in front of a High Court judge. They are named in the judgement. All credit to them.

is worth a read:

https://www.malcysblog.com/2021/06/oil-price-hurricane-eco-atlantic-petrofac-zephyr-and-finally/

Oil Beast
It is not at all farcical. It is fraudulent and show the Boards utter contempt for shareholders. And to make matters worse the Bondholders will now appeal at our expense. The first job of the new board will be to terminate this arrangement.

Albie
The threats are hardly veiled, and given the decision It was inevitable. Stand firm and wait for the new board.

PC01
You appear to have interpreted my comment as a suggestion that current price oil will have no bearing on the minds of those who are interested in buying into this project. To answer your question, I acknowledge that the return to $75 from the low will certainty improve JOG’s position. If it was still $50 or below, I think they would have great difficulty in attracting a partner.
My point is that the most important thing for any party considering investing in this project is what the oil price will be when production starts and going forward from there rather than what it is now. No revenue will be made between now and then whatever the price is. The consensus view is that poo will continue to improve but nothing is certain as the events of the last eighteen months have shown. In fact, if the oil price were to rise rapidly to new heights what might be the consequences. This last downturn has forced out a lot of marginal production including US shale. How much of that might be brought back if prices return to $100. Furthermore, a rapid rise to $100 could easily be followed by a correction and I would prefer so see a steady continual improvement.
The suggestion by Herron was that $100 “would tip the balance on an investment decision”. Personally, I hope that getting to $100 will NOT be a prerequisite for an investment decision and that the current price along with the prospect of a further steady rise should be enough to attract a partner or partners.

I have no doubt that if the restructuring plan were to succeed the Ad Hoc Bondholders will take over the entire Company. All they have to do is form a consortium, delist and force a takeover with a pittance of an offer. Legalized theft.