George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
Https://finance.yahoo.com/news/drugstore-makeup-brands-stock-price-180527315.html
why would these royalties' keep being mentioned in Hur presentation and CA statement .. extra monies
I'm not convinced and will wait the EGM to understand the terms better.
My understanding is that the offer of 12.5p max is tied with Hurricane energy, however if Prax buy's a producing asset , we would be entitled to royalties 17.55 , see below from CA
By contrast, this takeover offer provides growth potential which the Fund believes will deliver a far more capable and commercial management that is motivated to ensure that the contingent consideration of 6.48p per share is paid to Hurricane shareholders, resulting in Hurricane shareholders receiving 12.5p per share. Crystal Amber also believes that Hurricane's tax losses will provide Prax with significant incentives to purchase production assets, all of which will deliver existing Hurricane shareholders with what is effectively royalty income through to December 2026.
Crystal Amber believes that Prax has the firm intention of using the Hurricane vehicle to make significant acquisitions. For context, the P6 well at Hurricane currently produces 7,700 barrels a day. Were Prax to make an acquisition producing 10,000 barrels a day, based on $80 a barrel, Crystal Amber believes that Hurricane shareholders would be entitled to 2p per share per annum from this one acquisition. This would be in addition to approximately 1.5p a share from the P6 well.
My understanding is that the offer of 12.5p max is tied with Hurricane energy, however if Prax buy's a producing asset , we would be entitled to royalties 17.55 , see below from CA
By contrast, this takeover offer provides growth potential which the Fund believes will deliver a far more capable and commercial management that is motivated to ensure that the contingent consideration of 6.48p per share is paid to Hurricane shareholders, resulting in Hurricane shareholders receiving 12.5p per share. Crystal Amber also believes that Hurricane's tax losses will provide Prax with significant incentives to purchase production assets, all of which will deliver existing Hurricane shareholders with what is effectively royalty income through to December 2026.
Old update however very relevant
Steven McTiernan, Chairman of Hurricane, commented:
“2020 is proving to be a hugely challenging year for Hurricane. We have had to contend with not only
a significant fall in oil prices and the effects of the COVID-19 pandemic, but also poorer than expected
reservoir performance from the Lancaster EPS.
The EPS was always intended as a long-term production test to establish the size and production
characteristics of this unique and pioneering basement play.
Basement reservoirs are subject to
profound technical risks, with difficult well conditions impacting the effectiveness of evaluation tools,
creating uncertainties which can only be resolved by observation of actual production performance.
It is nonetheless disappointing that the Technical Review has so far resulted in significant reductions
in reserves and resources.
On a more optimistic note, initial studies suggest water injection could
partially mitigate the reserves downgrade, and onlapping sandstones at Lancaster could represent
material upside potential
Latest RNS finance figures advised
$25.bpd = costs
Therefore at conservative 10,000 bpd at average $75.00 oil = every 50 days = $25million clear cash profit $50x 500,000 = 25million , current figure in bank after bond payment $82million plus last lift October = 107 million ,
end November +25million
mid Jan to end +25million = Bond payment , dependent on oil price at November and January offloads price could go higher .... even when production slows to 8.500 bpd would add another nine days between lifts average 60 days between lifts , 6 or 7 lifts a year , business dependent on oil price , important to use surplus $ to invest in next stage , sure bondholders might want to extend their bonds and receive some more interest payments. remember this from
Sep-20 , its still their hence why our directors spent 17 million trying to steal it.
Steven McTiernan, Chairman of Hurricane, commented:
“2020 is proving to be a hugely challenging year for Hurricane. We have had to contend with not only
a significant fall in oil prices and the effects of the COVID-19 pandemic, but also poorer than expected
reservoir performance from the Lancaster EPS.
The EPS was always intended as a long-term production test to establish the size and production
characteristics of this unique and pioneering basement play.
Basement reservoirs are subject to
profound technical risks, with difficult well conditions impacting the effectiveness of evaluation tools,
creating uncertainties which can only be resolved by observation of actual production performance.
It is nonetheless disappointing that the Technical Review has so far resulted in significant reductions
in reserves and resources.
On a more optimistic note, initial studies suggest water injection could
partially mitigate the reserves downgrade, and onlapping sandstones at Lancaster could represent
material upside potential
This Rns was in response to CA article 94
The Fund has written to the Hurricane Board under Article 94 of the company’s articles of association to request that a committee (comprising the non-executive directors) be established with a mandate to investigate what happened and to engage external advisers (should that be needed) for the investigation. The committee would then make a recommendation to the Hurricane Board.
fractured basement are so hard to predict and navigate it’s to help then defend the article 94 nothing has changed since yesterday why did the bond holders try to steel the business of going under in six months …
It’s all related to CA article 94 ,
The Fund has written to the Hurricane Board under Article 94 of the company’s articles of association to request that a committee (comprising the non-executive directors) be established with a mandate to investigate what happened and to engage external advisers (should that be needed) for the investigation. The committee would then make a recommendation to the Hurricane Board.
they’ve had to put out the worst case scenario out to avoid court and keep this make believe doom and gloom believable… fractured basement reservoirs are so hard to forecast hahaha … remember the bondholders wanted 95% of your equity for 50million and suggested the company was worthless …
https://www.boerse-frankfurt.de/bond/xs1641462277-hurricane-energy-plc-7-5-17-22
I understand CA brought this up in the court and had earlier discussed Jan 2020, to buy back bonds mentioned in court it was a no brainer , even if that 17 million had been spent buying bonds , Hurs debt would be under £200 million ,
I can see a strategy to buy back bonds with the open cash. Before looking at finance to help with further exploration , maybe Trice might come back after all i found well six ,
Bonds trading at 50% discount ,, maybe CA initial strategy will be to start buying bonds with Hur's unrestricted cash at circa £106 million
https://www.boerse-frankfurt.de/bond/xs1641462277-hurricane-energy-plc-7-5-17-22
https://www.boerse-frankfurt.de/bond/xs1641462277-hurricane-energy-plc-7-5-17-22
last price 51.25
Change to prev. day
23/04/21 10:42:10
Bid Ask
51.25 56.50
for 200,000 nominal for 200,000 nominal
Spread absolute / relative 5.25 / 10.24%
Bonds are still rising , 12 month high , a little sprinkle of positiveness !!!
Performance Hurricane Energy PLC 7,5% 17/22
Period 1 month 3 months 6 months 1 year 2 years 3 years
Low 26.60 26.60 26.60 26.60 26.60 26.60
High 50.75 50.75 50.75 67.05 67.05 67.05
Performance 83.88% 77.45% 79.33%
BONDS on the rise .. coincidence or confidence?
On the rise today .. something brewing could
HUR Be BUYING , or confidence growing either way another sprinkle of positivity!
HURRICANE ENERGY PLCDL-CONV. BONDS 2017(22) Bond 50.75+7.75+18.02
lots of questions still to be answered and whilst well six is still on line and producing 12,000 bopd, and oil above $60 , Hurricane may find some new backers or buyers.
SEPT 2020
Steven McTiernan, Chairman of Hurricane, commented:
“2020 is proving to be a hugely challenging year for Hurricane. We have had to contend with not only
a significant fall in oil prices and the effects of the COVID-19 pandemic, but also poorer than expected
reservoir performance from the Lancaster EPS.
The EPS was always intended as a long-term production test to establish the size and production
characteristics of this unique and pioneering basement play.
Basement reservoirs are subject to
profound technical risks, with difficult well conditions impacting the effectiveness of evaluation tools,
creating uncertainties which can only be resolved by observation of actual production performance.
It is nonetheless disappointing that the Technical Review has so far resulted in significant reductions
in reserves and resources.
On a more optimistic note, initial studies suggest water injection could
partially mitigate the reserves downgrade, and onlapping sandstones at Lancaster could represent
material upside potential.
Antony Maris, Chief Executive Officer of Hurricane, commented:
“Production in line with expectations, a December lifting from Lancaster, and higher oil prices
combined to deliver a $19 million increase in net free cash at year-end compared to end November
2020. A continued recovery in oil prices would further enhance the significant value we see in our
West of Shetland portfolio. As previously reported, we are currently engaging with our stakeholders
on a proposed development plan for Lancaster and its associated funding, in order to maximise the
potential value of our assets.”
o Year-end net free cash1
: $106 million, compared to $87 million at 30 November 2020
Trading Update
• Production for the final four months of 2020 averaged 12,500 bopd, within guidance
• Production and oil sales for the year ended 31 December 2020
o Production: 5.1 MMbbls (average of 13,900 bopd)
o Oil sales: 5.1 MMbbls across 12 cargoes
• Operations
o Aoka Mizu FPSO uptime of 98% during 2020
• Key financials for the year ended 31 December 2020
o Revenue: $179 million
o Realised annual weighted average oil price of $35/bbl, or a $7/bbl discount to Dated
Brent, including transportation costs
o Discount to Dated Brent of $2/bbl in H2 2020, compared to $10/bbl H1 2020, as oil price
volatility reduced
o Year-end net free cash1
: $106 million, compared to $87 million at 30 November 2020
Pound rising v dollar = bonds are in dollars less to finance ,, wave good bye to the bondholders ??
Surely Hur has enough funds with their positive cash balance , and i think circa 37 million deposited for the bond on the balance sheet.
With the pound strengthening , doesn’t that make the bonds in dollars cheaper to finance ..
100 million cash sat in our banks , positive winds for oil, positive pound v dollar , positive CPR , Sprint , Lincoln , side track well 7 , surely enough there to refinance 100% owned Lancaster , appraise and unlock the significant value mentioned in the last RNS .
Surely if the Cargo In December added an extra 19million that was not forecasted in November ,
With higher oil prices now and forecast to continue, 4 more cargo's would raise on current oil prices circa 80 million, that would give HUR 189million in the bank , plus the 17 million decommissioning bond.
Why not use this money to pay the bonds. ? £180 million required
I understand people are suggesting the well six his going to slow and increase water cut with current structure , however after todays RNS quoted
Why would they advise: Oil production in the fourth quarter of 2020 averaged 12,700 bopd, which was lower than the third
quarter primarily due to a decision to limit production from the 205/21a-6 well to c.12,000 bopd
in November 2020 for reservoir evaluation and management purposes.
Confusing why a company currently making 20 million a month ,assets to explore , and with a statement that read
A continued recovery in oil prices would further enhance the significant value we see in our
West of Shetland portfolio !