The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Viaro RTO (reverse take over) to obtain a listing could be perfect outcome:
1) No issue transfering tax credits
2) Can drill Lancaster without risk of it being single producer in portfolio
3) Those who see future growth could likely remain invested
Viaro just taken over Spark energy (who own fractured basement exploration prospect immediately north of Halifax).
Seems like too much of a coincidence to me....
P6 of this old presentation (2019) explains the link.
https://sparkexploration.com/wp-content/uploads/2020/03/APPEX-2020-Spark-Exploration.pdf
More info :
https://www.offshore-mag.com/business-briefs/company-news/article/14290461/viaro-reaches-deal-to-acquire-spark-west-of-shetland-interests
https://www.energyvoice.com/oilandgas/north-sea/west-of-shetland/486775/viaro-energy-spark-exploration-west-of-shetland/
^ That is *very* interesting...
Spark were an Australian company who own exploration prospects on Rona Ridge between Lancaster and Clair.
Small outfit set up specifically to explore fractured basement on the "bader" prospect north of Lancaster.
This presentation even mentions Hurricane's success on Lancaster as something they aspired to replicate.
If Viario have just taken over Spark (and presumably plan to explore fractured basement) then they will certainly be sniffing about Hurricane. I think we have a deal ?
https://sparkexploration.com/wp-content/uploads/2020/03/APPEX-2020-Spark-Exploration.pdf
Viaro at ‘very advanced stage’ of deal for ‘large’ North Sea production assets
https://www.energyvoice.com/oilandgas/north-sea/west-of-shetland/487051/viaro-production-assets-north-sea/
“We have a large amount of cash on the balance sheet, and we want to spend it – West of Shetland is a good area to invest and develop. Soon we will release our audit reports, and there will be no dividends paid out, and our strategy is not to pay any for the next couple of years at least.
I am getting impatient...
However 2 things make me think something is cooking:
a) CA not requisitioned another general meeting. So clearly they are happy.
b) Board have yet formally proposed capital return / 3.1p dividend despite having new legal power to do so.
Every morning I get up hoping for RNS bringing news that takeover / FSP has finally completed. Every morning I am disappointed... The HUR nightmare drags on one day longer
Can Maris do anything that adds value for shareholders? His reign been one of negativity and value destruction at every opportunity.
Trice had his flaws. However he never tried to give company away for free. Current BoD have talked down prospects at every opportunity... Now they wonder why they can't sell at market value.
Having marched troops up hill CA most certainly need to make a statement Monday
My current guess is someone (kistos?) wants to buy HUR and make use of the tax credits. But they can only afford ~7.7p. Therefore to sweeten deal the dividend of 3.1p will be announced at the same time.
Pure speculation - however something is going to have to give soon. Either a bid materialises or CA request general meeting to remove Maris.
RNS leaves us none the wiser.
Reading between lines:
1) CA and HUR at loggerheads over capital repayment
Or....
2) 3.1p payment will be announced in conjunction with sale at lower price of 7.7p
Should all come out in wash soon assuming CA stick to their self imposed 6th Feb deadline for requesting GM to sack the board.
> Why would you deter investment in our own Uk and north sea waters?
Which other industry in UK is (retrospectively) taxed at 80% ?
In post Brexit Britain the Tories would rather the investment and jobs goes overseas rather than Scotland.
> How does the WFT impact production?
The windfall tax is a total pig in a poke:
a) without government stealing profit (retrospectively) Kistos share price would be at £10-20
b) pricing future deals is impossible given uncertainty
c) exploration in UK has become economically unattractive option
absolutely no doubt Kistos have better management team!
Above comparison would suggest ~16p fair value for HUR?
Though I would expect a sale to conclude at 12-14p.
Decent RNS. However, as of yesterday, I am out for now. Been a great ride for me (£1.40 to £4.15). Still believe in AA and Kistos. However short term challenges remain:
- Dutch TTF at lowest level for 16 months.
- Shortly moving into spring and lower demand for gas.
- Production eventually needs replaced.
- Challenging environment to do deals
- Windfall tax
Maybe I will regret this. Deciding when to sell a share much harder than deciding when to buy. If price drops can certainly see me returning in late spring / summer.
It is interesting to compare market cap of both companies.
Both have net cash of ~120 million.
HUR producing 8k bopd.
Kistos producing 10k bopd (gas equivalent)
In both cases the existing production has finite time remaining.
HUR market cap = 160 million
Kistos market cap = 362 million
^ all irrelevant. In a democracy the power must always sit with the voters. Scots elected a Holyrood parliament who voted to hold IndyRef2.
Who is actually being selective about which results to respect ? Not least given Scotland voted 62% to remain in EU.
Great news. CA (who have inside information) obviously see another exit path, which they deem to be acceptable, on immediate horizon
Brexit exposed the real fanatics / nationalists.
If the SNP were actually making a bad job of government (as you claim) then we could simply vote them out. UK government now being selective about which democratic results to respect in their denial of a second referendum (which the elected Holyrood parliament voted for).