Worst Case...8 Jan 2021 09:14
The company needs to consider whether this element of the December RNS still applies or to give small investors some idea of the probability of this occurring in 2021? With a statement like that hanging over us further investment in HUR is very risky. The annoying thing is that the field is viable (imo) and someone will make money from it, just not the little people.
"It should be noted that there is a risk of dilution to existing shareholders from a possible restructuring and/or partial equitisation of the convertible bonds. Furthermore, if no agreement can be reached with the Company's stakeholders on additional investment, further development activity at Lancaster might not be possible. In such a scenario, Lancaster could continue to produce from existing wells before reaching the economic limit, the timing of which would depend on oil prices, actual production levels delivered and the level of cost savings achievable. The field may then be decommissioned, with potentially limited or no value returned to shareholders. Notwithstanding these risks, the Company will endeavour to secure the best possible outcome for all stakeholders."