RE: Answers23 Apr 2023 19:04
Re:1. Both are mentioned. 6.02 and 6.29
Illustrative Lancaster returns to Hurricane Shareholders as a standalone independent business compared to the outcome pursuant to the Acquisition under the same production assumptions are presented below:
Returns to Shareholders 2023 2024 2025 2026 2027 Total
------------------------- ------ ------ ------ ------ -------- ------
Hurricane Standalone 3.32p 0.83p 2.07p 1.94p 0.00p 8.17p
Acquisition (through
Special Dividends
and DCUs) 6.29p 1.21p 1.13p 0.35p 0.00p 8.98p
Cumulative Variance
( Acquisition vs
Standalone) +90% +81% +39% +10% +10% +10%
Holders of Deferred Consideration Units will benefit from 17.5% of all other Net Revenues, including from any acquisitions made by the Hurricane Group, from 1 March 2023 until 31 December 2026 meaning the Acquisition, assuming full value is delivered by the Deferred Consideration Units and the declaration and payment of the Supplementary Dividend in full will deliver Hurricane Shareholders 12.50 pence per share.
In an orderly wind down of the business, Hurricane expects to pay for the ongoing costs of the business and the decommissioning of the wells and facilities, and return all of Hurricane's remaining cash and cash from operations to Hurricane Shareholders, with the last payment expected to be in 2026. In aggregate, the Special Dividends and Cash Consideration under the Acquisition total 6.02 pence per share, which, together with the 17.5% share of future Net Revenues directly from the Lancaster field, is greater than the sums that the Directors expect to be able to return to shareholders in an orderly wind down of the business, assuming that the oil price is US$80/bbl from now until COP.
Re:5. We have to know before voting how to deal practically with DCUs. How to sell them on MBF if they will be linked with tour brokerage account?
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