Member Info for MCB55

Aduk,
Just brilliant!!

Possibly to buy DTU!?

My understanding is that the Ftse 250 tracks by definition 250 stocks by market value, and so stocks move in and out according to sp performance. Also my belief is that there is a minimum mcap for stocks to be promoted and that is ca £250m (maybe £500m, I am sure someone knows!?) and we don't comply at current sp! Sad but true!
Also I think Hur are too busy (again!) trying to sort out a 2020 drill plan with the OGA and Spirit right now! However they should have clarified all this at the CMD!!

Quite a number of small businesses and shops are opening up in Colorado!

READ MORE: List of Colorado businesses that are open
https://www.thedenverchannel.com/news/coronavirus/coronavirus-in-colorado-latest-covid-19-updates-from-may-2-3-2020

Assuming £1m/mth turnover and a NET profit of 25% (after overheads, etc) equates to £3m/a. So with a lowly p/e of say 20 (considrably higher usually for CBD stocks!) gives an sp of 60/175 = 34p!!
So plenty of upside here.......all depends on sales and net profit.

Why not just a bank loan then?

Agree in principle, but such a strategy has to be balanced against their known capital demand to meet their licence commitment wells, possible further production wells and their share of capital equipment commitments. Also it is a bit of financial engineering/investment that I think is a tad beyond Dr T's risk comfort zone, being a geologist! However there is merit in this, maybe even consider option/derivative trading.......but again not easy to see a dyed in the wool oil company venturing into such things?

The main reason that Hur didn't hedge is because they are not yet a stable producer, they are a test bed! It would be highly risky to hedge even 50% of your anticipated test production and certainly not in those tentative few months from first oil when who knows what might happen!!

Considering that this was CAPITAL Markets Day there was not much, if any, discussion on selling the story to the markets! It was highly technical and welcome for that, but fell short in a number of areas:
1) No mention of why they think sp is so low, and not just because of poo and virus.
2) what can be or is being done to improve sp, only suggestion of further tiebacks possibly, that is increase production. Also an illusion of a buy out or farm in or timescales.
3) No real explanation of why Lincoln tieback is delayed/cancelled, except to say the JV requested the OGA for further field delineation (not the other way round!) to refine the field knowledge (inorder to help a sale?).
4) Obviously it is desperately difficult to "plan"without a crystal ball, but they could have said worst case, probable case and best case plan. I guess their plans are still highly uncertain, so little mention.
5) They were only confident of Hur able to continue as a going concern.
6) Plans have to clarify quickly for this drilling season.
7) No-big player is going to buy on the basis of this, too many uncertainties......so have to wait another year and see what the 2020 drills and the CPR brings and the poo of course!
Just a few thoughts for now, however the only way is up from here, but will take time for the mist to clear!

BH,
Although I mostly agree with you, the real near term news we need is seed sales! The planting season is not extensive (unless in a greenhouse) and I think only lasts til about May (possibly June?).....do you know?

johnpwh,
"continuing to generate revenue via production to help cover fixed costs seems on the face of it to be preferable."
I totally agree, any income is better than zero income. There is no merit whatsoever in shutting down, only in keeping an eye on/reducing capex spend. The cash in the bank will see Hur through to better days. Also the AM is still a test bed and proving up the reservoir and so its earning its keep on that front too!

US sp $0.089 up 53% ! Low volume though.
That is equivalent to 7p.

The balance of probabilities backed by Hur reservoir models and water behaviour/anaylsis is vastly towards it being perched water!

JoeSoap,
I don't think you can "trend" perched water, there is a good chance it will go down in time as a big pocket of water empties! Interesting to hear what Dr T has to say though.

When do you expect the above......I would think next week!?
Should give us not only an historical update, but also a look at forward plans?

Although Colorado is in semi lockdown it would be good if NT could confirm that skeleton staff at their growing and harvesting facility can keep working and the show goes on on track!

"I do wish Hurricomms could be a bit more 'open' about what's going on."

Yes wouldn't we all.......but to be fair I think the situation is somewhat "fluid" to say the least and no concrete forward plan as yet (the OGA, Spirit and poo being major and variable influencers!).......and as you have said before Hur are not about to comment on day by day operations.

Totally agree, I feel like making the counter arguments, but have refrained as it would just end up as a fight!
Comments on Hur and poo is fine, anything else either don't post or ignore!

Aduk,
Surely must have an rns tomorrow detailing the work programme, at least for the first operation if not for the summer too (however that might be a bit too much to expect given all the uncertainties!).

"Unless the Saudi’s rescind their threat to flood the market with crude oil, prices are doomed to drop another $5 to $10 per barrel. If they withdraw their threat then prices will surge similar amounts, but gains will be limited by extremely low demand."
Quoted from article on Fx Empire yesterday!