Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
Will you vote Yes then?
Guys, I would like to encourage you to ALL read the long email I have posted earlier today.
I would like to hear from YOU what is your opinion about this UPDATED Option B idea, is this a feasible plan, what should be changed? Do you already have any companies in mind to takeover for up to 50m USD, because if not, I will start looking around myself. Time to act or accept the Prax offer without further moaning.
Sorry for no more than 50m
This is not an easy plan, but possible.
Matter of finding a suitable company for no less than 50m
Included RB of CA and Kerogen.
What u think?
Part 3/3.
The above numbers of course are for informative purposes, but I am seeing them as realistic, especially if you allow yourselves and us, shareholders, to look proactively for a company to take over.
Some additional effort would be required in 2023, but the advantages are greater than risks and worth to explore.
Please let me know if you have any questions. Looking forward to hear from you.
Part 2/3.
Advantages to Hur A shareholders:
A) 7p per share paid in 2023 (capital return + sale proceeds)
B) right to a special dividend from 17.50% capped at 6.48pps
C) no need to deal with tax matters related to DCU proceeds received off the exchange and no need to deal with ISA holdings before and after the sale
D) keeping the company listed will allow shareholders to sell their shares at any time
E) any share price higher than 0 (zero) is creating additional value to shareholders immediately after the split
F) possibility of receiving 0.50-1.0p per share from 2024 (from taken over company)
Shareholders to deliver a list of companies meeting the criteria. Dividend of 0.50p per share should be available if the taken over company delivers 10m return a year
G) return from investment can be higher than 12.50per share by end of year 2026.
Disadvantages to Hur A shareholders:
A) no bi-annual dividend from Prax (Hur B)
B) possibility of receiving 0.50-1.0p divi per share from 2024 (from taken over company) depends from a success of finding a suitable company to buy
C) selling shares too early will disqualify from access to 6.48pps special divi (17.50% of all Net Revenue).
Advantages to Prax:
A) Prax to receive a producing P6 well and licences
B) Prax to retain all £300m or 90% of tax losses
C) Prax is able to proceed with any acquisitions immediately after the deal
D) Prax to keep access to the restricted cash of £45m.
E) no need to distribute DCU dividends bi-annually to thousands of ex-Hurricane shareholders
F) no need to distribute 17.50% of all Net Revenues to thousands of ex-Hurricane shareholders
Disadvantages to Prax:
A) Prax to pay more upfront
Advantages to Hur A and Chances:
A) Company still listed on the stock exchange
B) Company to remain a producer and will gain access to new wells and licences
C) Company to keep professional links with Prax
D) Company to keep a change to receive 17.50% of Hur B Net Revenue
E) Buying another producer should make the Hur A share price stronger and return to 2-3p which would represent 40-50m mcap. This is an important and forgotten possible outcome.
F) Company can spend £1 and receive £91p back while investing in a new project
G) Company is able to drill in the future using the licenses from the taken over company
H) Any new successful drill adds cash to the bank and increases share price.
Disadvantages to Hur A and Risks:
A) Hur A to return part of unrestricted funds to own shareholders on the sale day
B) Hur A to lose all or 90% of tax losses and will lose all cash stream immediately on a sale day
C) needs to stay operational after the sale
D) Hur A to continue deal with shareholders and their matters
E) Difficulty in finding a suitable company to take over
F) Company to be represented in the future by the directors brought from a taken over company.
The above numbers...
Emailed comoany on the 27th.
Part 1.
Dear Sirs,
I have an idea which I would like to share with you all.
The idea is to proceed with the "Prax deal" and to keep the Hurricane Energy listed. There are benefits for both sides in this outcome. Let me explain this please.
I believe that Prax is interested in the Hurricane's producing P6 well, license and in access to the tax losses. You can correct me if this is incorrect or something is missing here.
Large shareholders such as like Crystal Amber or Kerogen are happy to proceed with the "Prax deal".
Many of the Hurricane private small shareholders are rather interested in receiving more funds upfront or keeping the company listed and operational.
What if you could split Hurricane Energy into two companies, say Hur A and Hur B and this way satisfy both sides?
Hur A - retaining all the unrestricted cash as they are on the sale day, keeping the stock listed on the exchange and retaining entitlement to 17.50% of all future net revenues earned by the Hur B (part of DCU).
Hur B - receiving P6 well, licenses, restricted funds and tax losses in 100% (if not possible to keep a small 10% in Hur A for their future use).
Prax buys Hur B for cash, but not for 0.83p per share as currently, but for 4pps (approx £80m). Same time Prax will keep ALL the cash stream from the operational P6 (no bi-annual dividends), license, £300m of tax losses and £45m of restricted funds.
Hur A to pay dividend of 4pps to own shareholders from the sale proceeds.
Hur A to return part of unrestricted funds of 3pps to own shareholders on the sale day.
Hur A to pay special dividend to own shareholders from 17.50% of all the future Net Revenues earned by Hur B (capped at 6.48pps).
Hur B (Prax) to proceed with the acquisitions as they wish.
Hur A remains listed - to represent existing shareholders in future dealings with Prax up to end of year 2026. No shareholder is concerned about understanding of tax implications related to DCU proceeds or ISA, no shareholder needs to cash any cheques, trade DCUs on the matched bargain portal or talk to own financial advisor about understanding of DCUs (this part is is impacting many small shareholders).
Hur A retains 10% of tax losses (if possible) and with own cash is able to proceed with a takeover of a low cap producer with debt to clear. Hur A to clear that debt immediately.
This deal is allowing Hur A to pay annual dividend of 0.50-1.0pps as the taken over company is a producer and has no debts.
This deal is allowing Hur A to spend £1 and receive £91p back while investing in a new project.
Advantages to Hur A shareholders:
httPs://www.bbc.com/news/business-65077495
Energy firms have called on ministers to reduce the windfall tax as oil and gas prices fall, ahead of a package of measures on energy security expected to be announced on Thursday.
Trade body Offshore Energies UK said that "when prices drop, it is fair that the windfall tax should fall away".
I will contact Hur Ca Kerogen today, worth to explore this way in my opinion.
That confirm again an indea about splitting Hur into A&B and selling Hur B to Prax with Lancaster, taxes and all. Hur A to remain listed and to collect DCU and 17.50% on behalf of shareholders like under todays plan.
Main reason the Hur A and Hur B makes a lot of sense!
Littlened,
this way Prax would only lose 10% of tax losses (if by law is possible to split the tax losses). If not possible to split tax losses then Prax will tske all 100% (this is what they want). If Prax will lose bit of tax, then they could negotiate divi level paid every 6 months to Hur A.
Hur A would keep the 17.50% net revenue from Hir B option (which we all now have been told to believe in) which has a chance to generate a substantial lump sum.
This is a gooe idea to explore in my opinion. Mayter of finding a company to takeover for max 50m.
The whole idea behind that Option/Plan B is to retain listing of the Hurricane company (Hur A) under new management brought from the taken over company. I wrote this quick before bed time, but the longer I think about it now, the more sense it makes, especially when both sides would get (in 90%) what they want. Long term Hur A could also grow allowing you to sell shares at higher price. Hur A would gain a producing well or wells and new licences etc.
I forgot! Under current agreement Prax will be paying us a divi if the Lancaster is okay. Hur A could be receiving this divi directly. This way not only a divi from a taken over company could be paid to us say from 2024 but also from Prax via Hur A.
People would not have to worry about ISA or what to do with cheques received twice a year from Prax etc.
Another additional value that I have not mentioned would be a share price alone.
Hur A after paying 2023 divi would go down to approx 3p considering it as a cash shell for a short period of time. Buying another company will make the 3p stronger as we would be back as a producer and would be investing £1 to receive 91p. You could sell tour shares at any point!
Existing shareholders happy, Prax happy.
I am a genius, should be appointed as a non-executive straight away :)!
Good night.
1p divi to all would need to be coming from a well or wells generating approx 14m pee annum. Unsure but maybe there is a company that needs 50-60m cash ASAP and is generating 14m. Matter of doing a proper research.
What if Hurricane could split into Hur A and Hur B and proceed with that Prax deal?
Hur A retaining unrestricted 140m cash.
Hur B left with Lancaster, licence, restricted 60m and 90% of tax losses.
Prax buys Hur B, pays 2p per share to Hur A and additional 1p after next offload, offers DCU directly to Hur A under same conditions 17.50% etc or slightly amended.
Hur A to pay divi 3.3p to own shareholders in 2023 from own resources and 2p received from Prax later this year.
Hur A to retain 10% ( 30m) worth of tax losses and with own cash can takeover some existing cheap producer with ageing urgent debt to clear. Hur A to clear that debt immediately. Production delivers divi 1c per year from 2024 paid to Hur A shareholders.
Same time Hur A can spend £1 investing in a new project and receive back £91c. Kind of new beginning with new CEO arriving from the taken over compang.
DCU miraculously delivers additional 100m. Hur A to share that cash paying a special divi of 3p some time in 2025.
Hur A keeps remaining funds, investing paying annual 1p divi and in 2026 we have 11-12p back. Maybe even more cause company have been drilling in the meantime.
If we vote No, then we will immediately see Prax offering more upfront cash to us ans another vote.
Flying,
You are wrong. They will not pay 250 or even 110m.
Look again and you will see les than 1p which will be covered by Prax. Rest is Hur's money.
Do they have to vote at all?