Member Info for mcadder

Yep doesn't read well at all....

"The Company recorded a loss for the year of $625.3 million, including impairment charges totalling $567.1 million in respect of the Lancaster field and the Company's exploration assets and an associated deferred tax write-off of $54.2 million"
Net free cash† of $111.4 million at 31 December 2020 (31 December 2019: $133.6 million) was significantly less than anticipated due to lower oil prices caused by the COVID-19 pandemic as well as lower Lancaster production than anticipated. Net debt† at year-end was $118.6 million (31 December 2019: $96.4 million)

· "In combination, lower than expected cash generation during 2020 and significantly reduced potential future cash flows from Lancaster means the Company will not be in a position to repay its $230 million of convertible bond debt at maturity in July 2022."
"This has been a profoundly difficult period for Hurricane and its stakeholders. The understanding of the West of Shetland fractured basement play has changed significantly. As a result, the potential of the Lancaster field is much smaller than originally thought and cannot support the level of debt in the Company which was sized for a much larger Reserves and Contingent Resources base."

Sense and sensibility - bopd will keep dropping throughout the year. It's all downhill from here so quoting "11,600 a day as if it's a given and to rely on that figure is wholly irresponsible.....

"the Company expects Lancaster field production to average 8,500 - 10,500 bopd in 2021, based on production from the P6 well alone on artificial lift via ESP"

"Relying on production from a single well as the Company's only source of revenue until such time as a further production well is brought onstream. There remain several risks relating to well failure, including risk of ESP failure (associated with run time) and multiple single point failure risks which can only be mitigated by additional well stock"

"There is a risk the Company is unable to secure or extend third party services. In particular, the FPSO is hired on charter from Bluewater. Under the terms of the agreement the Company may elect to extend the FPSO term periodically. If the Company is unable to, or elects not to, extend the FPSO charter on existing or amended terms, there is a material risk to ongoing production from the Lancaster field"

"from 5 June onward the day rate for the Aoka Mizu increases from $25k/day to $75k/day. See Lease Overview p170 of 651"

Just a few of the numerous risks here that people keep overlooking...

Zephyr energy right now reminds me of where Hur was back in 2016 when Hur rose all the way from 9.5p to 64p.
Difference is they have zero debt, are fully funded for the lateral well drill, require no farm in, have over £10M in the bank, will be producing very soon in the Paradox Basin in the US, have acquired assets and have a CEO with 10% skin in the game.
The Paradox is potentially a HUGE oil play there and their current SP of 3.5p with just 1.2Bn shares represents at this stage a potential 10 bagger.
Something like that is far far more of a decent proposition than what is going on here frankly.

"Very Strong Today finish towards the close there"

Dick what planet are you on??

And right at the end widened the spread 1.20 to sell 1.39 to buy ffs

slift - the level of delusion on this bb is truly staggering I don't think anyone that's bought in here over the last few days really understands the reality of the situation....

If you want an example of a CEO in an oil company who actually cares about it's shareholders, has tons of skin in the game, great prospects and zero debt then an obvious example is Zephyr Energy...

Pump and dump round 2. I did try to warn you lot but you always think you know better

"Aye mcadder no doubt spooked a few!"

No they didn't the company spooked them with the last few horrendous RNS's and some of us merely repeated what the company are saying along with our views on the subject....

Yep it's there in the 651 page Explanatory Notes dated 19th May...
4.12
As part of the original Lancaster Area development plan approval from the OGA, the Plan
Company was required to provide security for its decommissioning liability on the Lancaster
Area on a post-tax basis. This had been satisfied by way of a decommissioning bond since
February 2019. Following the September 2020 RNS, the decommissioning bond provider has
requested that the Plan Company provide cash collateral for 100 per cent. of the bond's value.
The decommissioning bond was therefore terminated by mutual agreement, and the Plan
Company placed £16.8 million of cash security in trust in order to continue to meet the
obligation to provide post-tax security for the estimated cost of decommissioning the
production wells, subsea infrastructure and related FPSO costs for the Lancaster EPS.

4.13
In April 2021, BEIS-OPRED informed the Plan Company of its intention to issue a notice
under section 38 of the Petroleum Act 1998 to the Plan Company requiring it to provide
additional security for the sum of £11.2 million, as BEIS-OPRED considered security should
be posted on a pre-tax basis. This means that the Plan Company will shortly be required to
place a further £11.2 million of cash in trust. A total of £28 million relating to decommissioning
security will therefore now be held in trust, ring fenced for decommissioning costs, and so not
available to the Plan Company to repay the Bonds in July 2022.

Soon the only supply of gas will be from mainland Britain - what a perilous situation N.I and R.O.I will be finding themselves in. If anything I'm glad Daera and now the Minister are taking their time in reaching a decision on the ML because despite what some believe each month that passes strengthens the case for storage on Islandmagee....

"Natural gas plays a critical role in Ireland’s energy mix and economy, providing around 30% of Ireland’s total primary energy requirement and generating about 50% of Ireland’s electricity. Many indigenous and multinational companies in Ireland rely on gas and around 650,000 households use natural gas for home heating. Ireland currently has two main sources of gas supply – Corrib and imports from the UK via two gas interconnector pipelines. Corrib supplies around 60% of Ireland’s annual demand with 35% imported from the UK and the remaining 5% coming from the Kinsale gas field (due to cease by 2021). Gas production from Corrib is forecast to decline over the next decade, accounting for less than 20% of demand by 2025 with supply ceasing around 2030.

In the absence of new gas fields, Ireland would then be totally dependent on the UK for its gas supply. However, by 2030, the UK will likely need to import 75% of its gas supplies because of a decline in North Sea production. These gas imports would likely come from Norway, Russia, Qatar and various countries outside Europe. Thus, the gas supply route to Ireland would be longer and add a greater risk of supply disruption and price volatility.
Furthermore, Ireland’s dependence on gas will increase when the use of coal and peat for electricity generation ends around 2025/2030."

Irish Examiner
NEWS
Kinsale's 42-year gas production to end after multi-million euro decommissioning project

S
SPORT
LIFESTYLE
OPINION
Kinsale's 42-year gas production to end after multi-million euro decommissioning project
Kinsale's 42-year gas production to end after multi-million euro decommissioning project
The Stena Spey Drill Rig with a support vessel at the decommissioning of the Kinsale gas fields. At peak production in the mid-1990s, the Celtic Sea field had 24 wells. Photo: Kinsale Energy.

FRI, 21 MAY, 2021 - 20:45
SEAN O’RIORDAN

"A multi-million euro decommissioning operation involving up to 400 people is underway off the South coast to plug the Kinsale field gas wells, which have supplied the country with almost two trillion cubic feet of gas since they opened in 1978."

"Eventually, the gas reserves in the field were depleted and production ceased on July 5 last year after 42 years."

"Specialised equipment was brought in from the North Sea for the decommissioning works, including a massive floating marine drill rig, The Stena Spey. Seven vessels transport equipment to and from the area."

The Sunday Times

Playing fast and loose with energy security
Crackdown on LNG imports and fracking is virtue signalling to nation’s cost

Gerard Howlin
Sunday May 23 2021, 12.01am
"Cybersecurity is the story this week. But it’s only the thin end of the wedge. Astonishingly we are a country without a national security strategy, although one is promised. Cyber aside, our energy security is now perilous. The combination of good policy and bad politics means the natural gas supply we need to decarbonise successfully is at risk."

"Unless stupidity is rewarded with luck, putting on the kettle will be the least of our problems. Hacked HSE computers require energy to operate. Cybersecurity is a first world problem for countries with sufficient secure energy to operate sophisticated IT systems. We are a country on the edge on energy security, and we are about to throw the safety net away."

I just prefer to be truthful - it's better than telling a load of lies and giving false hope. Plus what has posting on a Sunday night got to do with anything?? Last time I checked this is a chat forum for people to speak freely on, unlike some I am not abusive, childish, immature or disrespectful, my posts are a realistic view on the situation Hur have found themselves in...

If the court doesn't sanction the plan for whatever reason then it gives the green light for Hur to commence a controlled wind-down of operations.

Goldenbadger - your calculations are missing other factors such as....

"total of £28.0 million ($39.2 million) of cash restricted as decommissioning security"
and
"The GWA joint venture has contracted a rig for the Lincoln-14 plug and abandonment, with a gross budgeted cost of $13 million for this activity" to name just a couple of expenses to pay from the cash.

"One of them told me why the judge is so sceptical and why he will not approve the sanction hearing if shareholders do not approve the current plan by board. The top reason is that it sets a very wrong precedent"

It will be a shallow victory no matter what the judge decides....
Failure to Implement the Restructuring

"In the event that the Restructuring Plan is not approved by the Bondholders at the plan meeting, or if it is approved by Bondholders but not sanctioned by the court the Restructuring Plan will not be capable of being implemented. In that scenario, it is likely that there would be a controlled wind-down of the Group's operations followed by an insolvent liquidation of the Company."

And any new appointments to the bod will be immaterial given the problems that remain, i.e Huge debt, technical default, diminishing production from one well from which it's reliability can't be guaranteed, the convenants attached to those bonds, massive decommissioning costs and other expenses, 50k a day increase in the daily costs of AM from 4th June, no guarantee the OGA will allow them to produce below bubble point, plus no money left for further investment to enhance future production and only 7m barrels recoverable.
But if they can get past all that, find someone to fund future development for a measly return then limited upside exists but that's being hopeful at best.

Put it this way Travel Man - it won't help you this time. I know who I am and slift knows who they are as do the several other posters. Sorry you don't like the reality of what it is we're posting...

"I have asked LSE to check the confluence of I.P addresses to see if they are the same person."

I think you'll be disappointed with the answer...

"So, what is the advantage of taking 95% of the equity just now ?
How do the bond holders plan to monetise that if its as worthless as you claim ?
I smell a RAT."

Because even with this plan they are not guaranteed all their money back considering production continues to decline averaging only 9.5k bopd for 2021, and the well could fail at any time given the reliance on the upper ESP

Pretty straightforward really...

"recent derampers paid by HUR are embarrassingly poor and laughable"

"Someine is rattled , sending their goons out on a weekend"

Have you any idea how deluded you sound LOL

As for Gary Newman I'd say he's called the situation with Hur pretty much spot on so far

"@McAdder - can you explain why the equity is worth something to the bondholders ?"

Simple - It's the only form of security the company have to offer and the only chance they have of recovering back their money. That's about as much worth as it has for them...