Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I doubt it. Spirit have already sold a lot of their Norwegian assets. Still you never know oil & gas plays in the West of Shetlands is a lot more attractive now with the high oil and gas prices and very recently after Russia has shown the value of Britain securing its own supplies.
Ron
Cont.
The effect on the price of oil is obvious.
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OFF TOPIC
Must say find it surprising that Centrica is looking to close down its oil company Spirit Energy .Thought it would have been wise to keep a foot in the oil business which looks a good place to be with the price of oil likely stay high [and increase long term] in my opinion. Leaving a market where you have built up assets and expertise to enter into clean energy ventures which will be competitive on an international scale looks to be very risky.
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All in my opinion.
Ron
RNS Number : 1078W
Hurricane Energy PLC
17 December 2021
Hurricane Energy plc
Greater Warwick Area Update
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Extract from RNS
As announced on 14 October 2021, the GWA Joint Venture ("JV") has been engaging with the Oil & Gas Authority (the "OGA") on the technical re-evaluation and interpretation of the GWA licence potential, and requesting a regulatory amendment of the obligation to drill a well on the P1368(S) Lincoln licence, which must be commenced on or before 30 June 2022, to a later commencement date. The OGA has indicated, as part of its considerations, that it is not content to support a deferral of the obligation well unless the GWA JV partners satisfy the OGA that they will be able to fund an obligation well in a timely manner.
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That extract from Hur's RNS update on Lincoln is hardly a surprise when you read the extract from Centrica's RNS below.
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From Centrica's RNS 08/12/2021
' Under an amended shareholders' agreement (the "Amended SHA"), Spirit Energy's future strategy will be to realise value from its remaining portfolio of assets in the UK and the Netherlands while minimising further investment in oil and gas exploration and development, and to utilise cash from the Spirit Energy Group's operations to meet, and de-risk, decommissioning obligations in respect of its remaining portfolio. Future cash flows generated from Spirit Energy's continuing operations will be retained within Spirit Energy until projected future pre-tax decommissioning costs are 1.5 times covered.'
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The OGA are not going to defer the obligation well on Lincoln by the JV partners unless they are satisfied that the well can be funded in a timely manner. The conclusion from Centrica's above RNS is our JV partner Spirit Energy will not be participating in the obligation well but will help to promote the area. Hoping to sell it?
There is the possibility that Spirit will walk away from Linconl or sell at 'distress' price. A distress price because they are in a hurry to sell their remaining oil assets and concentrate on their gas assets and clean energy ambitions.
Hur being able to finance an obligation well on Lincoln in 2022 does not look to be a possibility. Looks like we will have to find another partner or negotiate with the Oil& Gas Authority [O&G] and show them that funds will be available in the future to drill that obligation well on Lincoln.
It is to be hoped that the O&G and others will realise soon that leaving oil in the ground may not be a good long term policy. Oil will be required for a considerable time to come. Demand for oil will reduce and so will the supply of oil. With oil being left in the ground and oil companies cutting back on exploration, or leaving the industry, the time may come when the equipment and expertise to extract enough oil to meet the reduced demand will not be there. The effect on the price of o
Re RNS
Mon, 20th Dec 2021 07:00
RNS Number : 1197W
Hurricane Energy PLC
20 December 2021
Surprised at the findings and comments on most of the RNS.
The efforts of the BOD and decisions made over the full course of the events leading up the High Court Hearing are in conflict with the decisions made by the High Court.
The shareholders were to be virtually exterminated by the BOD and serious efforts were made to make this happen. Substantial amounts of Hur's funds were spent and a bonus offered to achieve this.
There was plenty of time during the course of events for the BOD to amend their policy, consult shareholders and prioritise saving the potential of shareholders investment/pensions etc.
The High Court decision and subsequent events are well on the way to proved that this could have been achieved.
My take is that Crystal Amber [CA] will achieve what the BOD failed to do and the shareholders will be very grateful for that. CA showed business skills and determination that the BOD sadly lacked. The BOD were incompetent over the full extent of events.
The final paragraph [below] of the RNS makes very good sense to me. As they say "We are where we are"
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The NEDs have agreed that no further action is necessary and believe that time and resources should now be spent on maximising the future revenue and potential of the Company. Every effort is being made to repay the Bonds at maturity, to give due and proper consideration to the interests of other stakeholders and to increase value attributable to shareholders.
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All in my opinion.
Ron
This is Kooba on Advfn take on Stifel and the Bonds,
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kooba
10 Dec '21 - 07:16
Stifel are acting as agent for holders they do not hold themselves , however due to the size of repurchase pretty sure must be one of the big AHC holders packing their bags.
Ron
From Centrica's RNS 08/12/2021
' Under an amended shareholders' agreement (the "Amended SHA"), Spirit Energy's future strategy will be to realise value from its remaining portfolio of assets in the UK and the Netherlands while minimising further investment in oil and gas exploration and development, and to utilise cash from the Spirit Energy Group's operations to meet, and de-risk, decommissioning obligations in respect of its remaining portfolio. Future cashflows generated from Spirit Energy's continuing operations will be retained within Spirit Energy until projected future pre-tax decommissioning costs are 1.5 times covered.'
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The above does not fit in with the previous Hur comment of the JV maybe looking for a third partner for Lincoln. Could be Spirit give up their 50% stake or sell to Hur at a 'distress' price. Should think it will be some time before we see some action.
Ron
Hur & Spirit Energy JV.
Thanks to WellIntervention for the post on 01/12/2021 14.50 giving a link to this subject.
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Norwegian energy company SVAL ENEGI nearing agreement to aquire Spirit Energy's oil & Gas operations in that country for $400 million.
Spirit Energy is owned by British Company Centrica.They have a 69% stake in the company.
It looks like it is easier for Centrica to sell parts of Spirit Energy's business rather than as a complete unit.
If this goes through there will be a lot of funds entering Spirit Energy's accounts.
What will they do with them?
It was said by Hur recently that the JV were considering bringing in an additional partner for the Licoln oil field. Spirit look to be carrying on with their other operations.
Interesting.
Ron
Tax losses against profit.
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Will repeat this part post on this subject.
ronok 4th. Nov.
[6] One asset which does not get enough airing is the historic losses which can be set against future profits. I believe these to be very substantial. The BOD and Bond Holders would have been well aware of these. A great valuable asset to use in a take over etc, Would be of benefit to shareholders if posters with the knowledge to quantify the losses and the circumstances in which they could be used would investigate.
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If any one is in the process of investigating the tax losses, or intends to, please carry on with it. It is a very important subject for shareholders and if a few people work on it can only be good.
A poster on ADVFN has recently provided some very interesting information on this subject.
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kooba on ADVFN
16 Nov '21 - 17:03
Something like 50p a share tax losses off the cuff…which could give a UK producer £1b of tax free earnings.
To be verified but the scale of the tax opportunity dwarfs most scenarios right now…company should be clarifying position and seeking to provide a corporate solution to massively enhance shareholder value.imho.
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Kooba is an experienced poster.
He does say to be verified so possibly has more work to do on the subject.
I had thought the tax losses would be big but this level surprises and even excites me.
In my submission to the High Court I said the Bond Holders were on to a bonaza if the restructuring plan went through and the shareholders would be virtually wiped out. Bonaza was not strong enough.
I would expect Crystal Amber and the Bond Holders would be well aware of the scale of these tax losses. They are both in the business analysing firms and their accounts.
Maybe helps explain Crystal Amber's confidence in buying into Hur's shares.
The Bond Holders would be well aware of these tax losses at the time of the restructuring plan and the potential value to them if they were successful.
The BOD would also have been aware of these tax losses and the value to the shareholders. How could they not have known?
I do not know how much another oil firm would pay on a takeover bid to get Hur's tax losses on their books. Would 25p per share be realistic?
The rest of Hur's assets have to be considered in a valuation. I am optimistic that another year's progress with Crystal Amber in the driving seat will make a big difference to the value of these assets.
I should hope these tax losses and the possible value of them that Kooba has highlighted will bring a measure of optimism to Long Term Shareholders.
All in my opinion.
Ron
Senseman
I think time will be the only thing that will confirm the well's performance.
Should have been estimated on reasonable assumptions for the Share Holders benifit.
Ron
Some Positives For Hur Shareholders
[1]The Lancaster well 6 has turned out to be a very good performer beating most if not all expectations so far. Just how good is it? A while ago I offered a speculative thought, as an non oiler, that the use of pumps was drawing oil from a wider horizontal plane and for the same amount of oil extracted the water level would rise slower. Maybe there is something in that.
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[2]Senseman did bring out, at the High Court Hearing, the fact that well 6 would be commercial as far as 2014. A very important factor in Hur's ability pay off the bonds. The then BOD would have know this and in turn so would the Bond Holders. As an non oiler I wonder if well 6 could be commercial beyond 2014 which will to an extent depend on the oil price. Does any one really know how the oil will flow though these fractures and how extensive the oil deposit is ?
So far so very good for well 6.
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[3] Good management make good decisions, pick the right people for the job, get good deals and can plan ahead. They can reduce the risks and increase the potential of a company such as Hur. Good management are a great and necessary asset for any company. Hur's management is a bit informal just now but my take is the new NEDs are doing well.We are fortunate to have Crystal Amber as a major shareholder, not part of the management, but certainly in the driving seat.
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[4]The shares bought the week before the High Court Hearing are still in my drawer. These were bought because of my assessment that Richard Bernstein [RB] would be a substantial help in getting a successful result. They are still in my drawer because again I believe RB is capable of achieving a lot more for Hur's in the future. His Fund's and the shareholders interests should align for a good part of the road forward.
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[5]Some time ago posted a view that I saw a measure of optimism for long term share holders[LTSH]. I still believe that now only the measure is a bit higher. RB's moves and comments together with those of the NEDs Alan John Wright and David Ian Craik also gives me a measure of confidence in the future for LTSH. This business is not without risks which LTSH will be well aware of.
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[6] One asset which does not get enough airing is the historic losses which can be set against future profits. I believe these to be very substantial. The BOD and Bond Holders would have been well aware of these. A great valuable asset to use in a take over etc, Would be of benifit to share holders if posters with the knowledge to quantify the losses and the circumstances in which they could be used to benifit share holders would investigate.
There are still hurdles to get over but positives are there.
All as I see it.
Al in my opinion.
Ron
Interesting Times.
Oil will be a very necessary commodatey for a considerable time to come. While the demand for oil will reduce over time this reduction has to be managed and controlled. The individuals and organisations demanding that it be left in the ground and that oil companies stop exploration are in my view being short sighted. The balance between supply and demand must be maintained to a degree. If there is not enough oil to meet demand then the price of oil can only go up and this rise could be very significant. If the oil supply becomes inadequate getting exploration increased again cannot be done quickly i.e. there is a big time lag with the obvious result to the price of oil. I cannot see the sense in a country like ours producing less oil than we need to meet our own reduced demand. It will be supplied by other countries. Not good for the balance of payments and our economy.
The demand side will be influenced by the need to control the world 's environment [climate ], population's health, clean air in populated areas. These need alternatives to be used and developed for the use of some hydrocarbons. Investment in forests, foliage and other CO2 using plants is also required. Underground storage for CO2 is also being considered.
Where is the oil price going? There has been very little effort by Opec + to control the price of oil within a certain range. The intention of Saudi Arabia to act as swing producer and for Opec + to limit the price rise to prevent world inflation by increasing production has not been used so far to any extent. A small increase is proposed just now. Maybe they do not think the present price of oil will cause much of an inflation problem. An economist would tell you the higher the price the more you attract the competition. My take on it is we will see increased oil production if the price of oil continues to surge. The mood for oil companies has certainly changed for the better and for their shareholders. Opec+ have the ball at their feet. If they let the price rise they increase revenue. If they stabilise the price by increasing production they increase revenue. Either way it now looks very likely oil will be at a price level that the sum required to pay off Hur’s bonds will be met on or before the due date.
All as I see it.
All in my opinion.
Ron
Interesting Times
What is the way forward?
One way to progress while reducing the risks and the time to develop the company's oil production base is to have a strategic partner or joint venture partners. Hur also needs to broaden its management and technical base which looks to be pretty informal just now. To do this we need to import funds from these partners in exchange for a share of the prospects in our oil portfolio. The substantial losses built up over the years to set against tax will be very attractive to some prospective partners if this can be done. Running the business from the production of one well is necessary just now but is only for the short term.
Had hoped we could have managed an early well drilled this year to hopefully boost production but should not think it will not happen now. Arranging deals, farm outs etc. does take time.
As I see it.
Ron
Saba / Crystal Amber
Looks like Saba and Crystal Amber are locking their antlers together.
Having a bit of a rut. Right season for it.
CA have been buying yet more of Hur shares recently and now buying more of their own shares.
CA look to be 'business as usual' and not too concerned with Saba.
Ron
Done
Hope this kills the practice.
Does anyone think R.Bernstein has not heard of this and of Saba.
Been well posted some time ago.
Trying to move the share price? Down perhaps.
Ron
senseman
Re recovering sharehalders funds.
Have sent an email to the management team, e mail addesses as posted by yourself.
Ron
Adoubleuk
Had great respect for your posts.
Learned a lot from you.
Thanks for sharing your knowledge and experience.
RIP
Ron
senseman
Ah your deleted post was on ADVFN.
Should think it will stay on there.
Ron
senseman
There is a copy of a post from you re court proceedings on advfn.
Is that the one that was removed ?
OIL PRICE
Looks to me that Opec + intend to try and control oil output to prevent a spike in the oil price. This entails increasing supply to meet the increase in demand on world recovery from Covid.
Not an easy thing to achieve due to the fluctuations in demand and the expected slow response from Opec +
Saudi Arabia has said before that they could become the swing producer so that could be one way to get a finer control of oil production.
Where oil price goes from here is speculation. If a price of $70 goes some way to meet the needs of the oil producers economies and prevent serious inflation in economies around the world then we may see the oil price fluctuate in this region.
All pretty speculative and subject to world events.
Ron
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