Member Info for mcadder

It was actually 2 months ago and at the same time they'd also said this......

04/03/2021
"One of Hurricane Energy’s biggest shareholders has threatened to take “appropriate action” to maximise the company’s potential after complaining of a breakdown in their relationship."

So what appropriate action have they taken then? So far it has achieved nothing if Friday's update is anything to go by!

This certainly makes sense now....

advfn bb - ngms27: "I believe that this has come about because the auditors wouldn't sign off HUR for 12 months as a going concern.This means they are trading as technically insolvent and had no chance of paying off debt when due. The only option was D4E or refinance and no one would touch them."

nigwit: "Who knows what the auditors said. Point is the project has run out of cash, which nearly always results in existing investors being wiped out by new ones or it being wound up. There are far better places for my money but it looks like many are still emotionally vested."

tournesol: "I'm a little puzzled at the comments questioning why Hur needs to act with such haste made by GHHGHH and others including some conspiracy theorists who seem to have just popped out of the woodwork. I've just read through the presentation that Hur posted on their website on Friday and the proximate cause of the urgency seems a) abundantly clear and b) easy to understand. The current segment of the Aoka Mizu contract terminates in June 22. If Hur expects to be unable to extend that contract then they are just a month away from the final year of production. And that means they will default on their liabilities. They cannot shirk that reality. They cannot kick the can down the road. As it is they are floating a scheme which might extend the AM contract a bit and might reduce the scale of the default. What's in any way unclear?"

RNSTranslator

Yep unfortunately there are some naive investor's who still think there will be a turnaround or white knight in shining armour to save the day.
As it dawns on investor's the astounding dilution heading their way we could see this drifting towards 0.5p this week.
Would I be tempted to buy back in? Not a chance!

adoubleuk -

I couldn't care who the person on advfn is but clearly they make an awful lot of sense. You sure you and your cronies didn't bully him off here a couple of years ago because he was too negative warning people about Hur and now he's turned out to be spot on? Lol
Well he's definitely bang on now!!

From advfn this pretty much sums it up here.....

nigwit: "Many seem to be missing the point. To continue trading as a going concern all companies have to be confident that they can meet their obligations as they fall due. This applies to Hurricane Energy as much as to any other business. The size of the respective assets or debts is not important, just the difference between them. If at any time a debt can't be met then the business is insolvent and must either come to a new arrangement with its creditors or go into administration. Hurricane has made an arrangement but it was negotiating from a weak position so it's going to cost. So I don't see a scam. I see a failed project that needs capital. Also, I understand why the BoD could not talk to CA (or any other shareholders). To do so would have been preferential and opened them up to serious accusations. It's not impossible that a better offer might emerge and perhaps CA will be behind it but I don't foresee anyone turning up and rescuing other shareholders for free. I sold out long ago, before I lost any money. That was after I saw the signs of internal conflict within Hurricane and understood what they probably implied. I'm fully invested elsewhere and have no axe to grind but it seems to me that lot of naive people have got carried away by some very clever and subtle ramping much of which was conducted by concerted by groups of PI's acting together. Some of these PIs have posted over ten thousand times on this and the LSE board. I imagine a lot of lives have been ruined by believing these idiots. Sadly it's not too late for more lives to be ruined since I am sure there will be people reading all the misconceptions and conspiracies and thinking about investing their life savings even now. In my view, given all the safer shares available, that would be folly. Remember, just because the shares only cost a penny doesn't mean they can't ever be completely worthless."

Plus in civil court it's based on "balance of probabilities" i.e lower burden of proof than "beyond all reasonable doubt" in criminal cases

Anytime kammi

"how mad would you be if a Suspension Rns arrived on Tuesday morning"

It could happen but I suspect this will continue trading until the court case is finalised. However between now and then the share price will likely be between 0.5-1p and that's being generous

Yep.
And even CA won't be able to stop this.

The final nail in the coffin is the now non-existent value of all the assets currently based on the 90% downgraded CPR, the medium term trend of production decline to the point it's uneconomic and the cost of further future investment in return for a small amount of oil plus decommissioning costs.

The case the bod will present at court will be clear and concise and a judge will have no choice but to ratify it under the Company Act of 2006, probably within an hour of the hearing.

"C. Amber might take the board over"

Fantastic next thing you'll be telling us is they might pay the debt off too and fund a new field development production plan to raise production at no cost to the shareholders.

Get real. This is knackered whether by deliberate means or not. If they wanted to oust the bod and stand any chance of influencing the outcome they would have had to have done so last year. They have been outmanoeuvred by the bod and it's now too late to change the inevitable. Over the next few years if there is ever any future investment it certainly won't be for the benefit of shareholders

Oilman Jim

May 02, 2021
Hurricane Energy (London HUR US OTC HRCXF) announced its proposed financial restructuring. As I said in the blog a few weeks ago when the share price was at 2.7p, the shareholders are done for. In return for releasing $50 million of the principal amount outstanding under the convertibles, bondholders will receive ordinary shares comprising 95% of the fully diluted pro forma equity of the company. That values the existing equity at just $2.63 million, which is £1.9 million, less than 0.1p per share.

I’ve actually been warning about Hurricane Energy all the way from the low 30s down. It was more or less clear what was going to happen here and no special skill was required to know. All you needed to have done was to read in full - and understand the consequences of - the contents of HUR’s RNS announcements. For those who got hurt, perhaps to protect yourselves in future, it’s worth remembering who was touting Hurricane Energy over the past year or so and recall that their “research” in fact was entirely false.

"Maybe delusional?"
I'll leave that up to others to decide.

"Oil is in place in significant Quantity"

The latest CPR suggests otherwise.
The decline month by month in production from pressure drop and high water cut support the analysis that there is an awful lot less oil than originally thought.
The bod didn't suddenly spring this upon us on Fri - they've been warning us since last year about this potential scenario that is now unfolding.

No chance Kammi - I'm understandably angry about the situation and having lost money but have no desire to buy back here.
But many have lost hundreds of thousands and millions and I feel truly sorry for them. But this bb needs an dose of reality after Fri and I have gladly provided that.

When I scanned over the update first thing on Fri I initially thought it was going to be 95% dilution in relation to the current shares in issue NOT 95% control of the WHOLE company!

That's why Hasiba and why I sold at a loss to get something back. It basically sets this up to drop further and further next week. And having digested the full update by Fri afternoon I wouldn't touch this with a bargepole not even at 0.2p

"Hurricane has agreed a proposed financial restructuring plan with a majority of bondholders, who would take control of the London-listed firm."

"But the plan appears to offer little more than a stay of execution."

"Even if it goes through, Hurricane’s board does not expect the firm’s only producing field, Lancaster, to receive further investment."

"huge downgrades to Hurricane’s resource base, once thought to contain more than 2 billion barrels."

"In September, Hurricane said the EPS would only produce 16 million barrels of oil, of which 9.4m remained, down from initial forecasts of 37.3m."

"A new report published last month showed Lancaster had reserves of just 7.1m barrels at year-end 2020, while the Halifax discovery was completely written off."

It doesn't matter about the huge cash pile or Brent prices because all Hur are doing is babysitting the money so that all of it and every penny that comes in for the next 15 months goes to pay off the debt. And rising Brent prices at this point won't make any difference to the outcome on a production well that continues to decline in production as each month goes by.
With potentially only 7.1M recoverable reserves at Lancaster left and no field development plan and with no means to fund such a plan they are not giving the company away because it is effectively worthless. Wake up and smell the coffee it's over.

I'm afraid this is game over for Hur. There is no article in the Sunday paper's and nothing from CA since Fri. Why on earth would anyone raise £50M in a share placement just to satisfy the repayment of the debt when this is the stark reality....

A new report published last month showed Lancaster had reserves of just 7.1m barrels at year-end 2020, while the Halifax discovery was completely written off.

So we raise £50M and use all the remaining cash pile to pay off the debt then what? We'd still need to find at least another £100M to cover development of further wells as the current well will soon be uneconomic to operate plus cover decommissioning costs and all this just to recover potentially only 7.1 million barrels??

Even if there was a way to stop the court process or stop the company being wound down no one in their right mind would chuck money at this now.
The situation being so dire is the reason that bondholders will be effectively taking control of 95% of the company for just £50M of debt write off and hence Fri's announcement. And the company have been warning about this to shareholders for months!

The Telegraph
Exclusive: Britannia to rule the waves once more, with new royal yacht named after Prince Philip
Christopher Hope 5 hrs ago

"Boris Johnson will announce within weeks a new national flagship named after the Duke of Edinburgh that will be seen as a successor to the Royal Yacht Britannia."

Plans to build yacht in Britain
"The hope is that as a MoD asset, ministers can direct that the vessel is built in UK shipyards in order to create jobs, reinvigorate the UK’s shipbuilding industry and showcase the best of British design, engineering and ingenuity around the world."

"One senior source said the plan was “ready to go”. Another said: “There was a bit of a fight between the MoD and the Cabinet Office about who pays for it."

“The lawyers are all over it because in order to stipulate that it is made in Britain it has to have a military use, otherwise it will go out to procurement and could be made in Italy.”

Never. Not without a share consolidation.

Perhaps once this is at 0.5p and they do a 10-1 consolidation perhaps 5p is reachable.
But then that will be after 38B shares are in issue

Hopefully he's been diligently working his way through the comprehensive reports from Daera. Recommendation from Daera to Mr Poots effective since 1st April and we know he answered questions about the ML on 13th April and one thing he confirmed was this...
"We have the papers, and progress is being made on arriving at a decision."

So at this point he's had this with him for a month. My view is a decision is quite near. He'll want this done and dusted in time for the possibility of becoming the new leader of the DUP. Having already spent quite some time on the subject he'll likely consider it in the interest of all concerned and transparency of the process to be the one to make the decision regardless of his intention to become the new leader.

By Cate McCurry And David Young
Saturday, 1st May 2021, 6:46 pm

News
Politics
Edwin Poots has backing of majority of DUP politicians, claims campaign manager Paul Frew
The campaign manager for Stormont minister Edwin Poots has claimed he has received the endorsement of the majority of politicians who decide the next leader of the DUP.

On Saturday morning, MLA Paul Frew, who was announced as Mr Poots’s campaign manager on Friday, claimed the Agriculture Minister has received the majority backing of their MLAs and MPs.

"No white in shining armour"

No knight in shining armour even