Member Info for mariog

If Prax does not want to pay 3-4p for all the package, do they have money for future developments? Their offer us under 1p. See my email posted here 9hrs ago

Little we are giving them 300m GBP in tax losses, dont forget

If we manage too vote this deal NO we can vote BoD out too

Glad I included CA and Kerogen in my email yesterday

Part 2/2.

To remind you, it is not a forced sale, not a bankruptcy assets sale, hence you and we MUST expect more.

A. Prax must offer more cash (3-4p) now OR increase 17.50% to a fair level with a cap around 10p (they only pay 0.83p for this deal to happen)
B. Prax should advise us on how the tax losses can and when will be utilised after the takeover (they do cover themselves on all fronts with this very complicated "deal" so they definitely have signed agreements with another parties and have a proper plan)
C. Hurricane must return all unrestricted funds to shareholders (recalculation will be required from you as there should be over 10m GBP available around the sale date)
HUR is planing to return in total £103.4 million which is less than unrestricted cash as at 28th of February (114m) and this difference will be only greater on a sale date.
D. Please add a condition about restricted funds transfer back to shareholders if not used in full (US$60.7 million).

If Hurricane is not sold now, then we will keep all today's unrestricted cash plus Future Years offloads (0.83p, 2.07p, 1.94p, 0.00p) which will be more than 10p and still keep door open to any new takeover offer. Not a big difference to be honest.

Please feel free to comment, reply, acknowledge this email at least. Thank you for reading.

Emailed HUR, CA and Kerogen.

Part 1/2
Dear Hurricane Board, Richard Bernstein (Crystal Amber), team Kerogen,

I am urgently writing to you as I am concerned about the terms of the proposed and recommended acquisition.
I am a shareholder in the Hurricane Energy.
The below is to prove that the offer is below the current value and should be revisited asap.

"As at 28 February 2023, Hurricane had Net Free Cash of US$140.1 million (around 114m GBP), as well as US$60.7 million (around 49.5m GBP) of cash and liquid investments within restricted funds, relating to decommissioning security arrangements and amounts set aside to cover potential early termination fees on the FPSO lease."
With next offload cash level will increase.

Hurricane accrued tax losses carry an approximate value of up to US$370 million (around 301m GBP).

Hurricane is debt free.

We all know that PRAX needs Hurricane's producing well and huge tax losses. You do not ask for any upfront cash for this item? They have a plan to instantly use the c.301m GBP of tax losses. It is a massive amount which can deliver instant savings to them. Their accounting team is only waiting to bank this amount. You cannot just give that away for nothing back today. Trust me, they want it and they will pay for it 3-4p extra. You are not forced to sell it, but the way it is all presented it looks like you are unfortunately.

Note that the presentation has some error in calculation under 5.6 "Comparison of Potential Returns to Hurricane Shareholders" as it it missing around 3p in the row "Returns via Hurricane Standalone". Please re-calculate and amend OR explain how each value is delivered: 3.32p in 2023. Future Years (0.83p, 2.07p, 1.94p, 0.00p).

The transfer of ownership in 85% covered by Hurricane (5.19p to be paid to shareholders from Hurricane's own funds).
Prax will pay ONLY 0.83p and promises 17.50% of future net revenues capped at 6.48p (also ONLY). Prax will get their 0.83p back from Hurricane's current accounts if you do not return ALL unrestricted funds to shareholders or simply they will get it back from the next offload. The future payments are not guaranteed to us, shareholders, it is all IF.
Prax will earn 82.50% of future net revenues (100%-17.50%), will keep the license, all Hurricane's documents, expertise, contacts, tax losses, operating well, rights to a listed company. All for 0.83p paid by Prax now.

Private investors do not support transfer of Hurricane's ownership under the proposed terms, please be aware of that.

To remind you, it is not a forced sale, not a bankruptcy assets sale, hence you and we MUST expect more.

PRAX needs Hurricane's producing well and access to huge tax losses (301m GBP instant savings). The transfer of ownership is constructed for Prax and in 85% sponsored by Hurricane (5.19p).
Prax will pay 0.83p and promises 17.50% of future net revenues capped at 6.48p.

Prax will get their 0.83p back from Hurricane's current accounts (IF BoD will not recalculate the unrestricted funds) or simply from the next offload.

If Hur is not sold, then we have all cash plus Future Years (0.83p, 2.07p, 1.94p, 0.00p) which is more than 10p.

It is not a forced sale, not a bankruptcy assets sale, hence we MUST expect more from PRAX and proper calculations from Hur.

A. Prax must offer more cash now OR increase 17.50% to a fair level with a cap around 10p (they only pay 0.83p for this deal to happen)
B. Prax should advise us on how the tax losses can and will be utilised shortly after the takeover
C. Hur must return all unrestricted funds
D. Hur has to add a condition about restricted funds transfer back if not used in full.

A. Prax must offer more cash now OR increase 17.50% to a fair level with a cap around 10p (they only pay 0.83p for this deal to happen)
B. Prax should advise us on how the tax losses can and will be utilised shortly after the takeover
C. Hur must return all unrestricted funds (recalculation required as there will be missing approx 10-15m before the sale date)
D. Hur has to add a condition about restricted funds transfer back to shareholders if not used in full.

Recommended Acquisition of Hurricane Energy plc
Thu, 16th Mar 2023 07:41
5.6 Comparison of Potential Returns to Hurricane Shareholders

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 via Acquisition (through Special Dividends and DCUs): Year 2023 is 6.29p. Should be 6.02p (0.83p paid by Prax). Future Years (1.21p, 1.13p, 0.35p, 0.00p). Total of 8.98p (only).

Returns via Hurricane Standalone put only 3.32p in 2023. Future Years (0.83p, 2.07p, 1.94p, 0.00p) giving a total of 8.16p (small difference vs above). BUT we are MISSING approx 3p which is held on the accounts already TODAY.

Are we playing with numbers?

Please check this with the lse.co.uk

There would be no issue if we got all cash now

Wake up. They offer £87m while Hurricane has $200m on the accounts. They will get OUR cash first and let you and all the media re-posting news think that they put 250m from their own pocket.

Gazelleman, then CA will vote them to stay.

If only CA and Karogen will vote yes, then we need 300m shares voting NO per quick calculations. We don't need all 25%

302k please add

We need them be with us. Every 1% counts. Someone is accumulating since yesterday.

Only acceptable should be to return ALL unrestricted cash to shareholders before the sale occurs.

Let ne aay this again.
Only guaranteed amount to be paid by Prax is £87m. This will unlock the door to $200m+ held on Hurricane's accounts today.

Future payments are not guaranteed.

Agree.
Point 3 totally opposite to the Prax argument about needs of cash.

I can't believe that offer t&cs. Scam.

https://www.investegate.co.uk/hurricane-energy-plc--hur-/rns/recommended-acquisition-of-hurricane-energy-plc/202303160741041988T/

Search for "net free cash"

Only guaranteed amount to be paid by Prax is £87m. This will unlock the door to $200m+ held on Hurricane's accounts.

As at 28 February 2023, Hurricane had Net Free Cash of US$140.1 million, as well as US$60.7 million of cash and liquid investments within restricted funds, relating to decommissioning security arrangements and amounts set aside to cover potential early termination fees on the FPSO lease.