Member Info for ronwoking

Senseman

did you receive my email with the deed poll

ronwoking

Senseman

I sent you a message on Advfn private messages.

Trust you are senseman on Advfn

Senseman

The deed poll was signed on June 8 2023

Alessandro Agostini ,who signed the deed poll for Prax E&P was also a director of Prax UL

He was appointed a director of Prax UL the same day June 8 2023 and has been a director of PraxE&P since March 2023

I do not subscribe to the lse private messaging service otherwise I would send u my mail email address.

Hi senseman

happy to email you a copy of the deed poll but do not know your email address .If you can get it to me that would be great but I am reluctant to post my email address on this board .

It would be very strange if computershare issued a DCU cheque without having the money already in hand from Prax.That suggests that since Prax is in administration they are uncertain how to proceed and will seek legal advice on how to handle the money.

If I am correct , then that is a good sign , as the payment by Prax to computershare would have been approved by the administrators and suggests that it may yet be made ……eventually.

Don’t hold your breath .

We DCU holders are also Prax creditors,but we are unsecured .

It will be HMRC as priority creditors who will get first dibs on any cash raised.

Sense

Hurricane did not sign the deed poll.

It was signed for Prax E&P by Alessandro Agostino ...and witnessed by Antony Maris

I can email you a copy if you would like one.

I have not yet tried to establish who Agostino is..

That being the case the committments to pay DCUs rest with Prax E&P alone.

I cannot see any obligations of PraxUL that might pass on to Serica except perhaps the obligations that Prax E&P undertook on behalf of its then Hurricane subsidiary not to screwup the revenues of hurricane to diminish the net revenues.

Its a total mess and I do not see any lingering obligations that Serica has.

Hank has reported receiving his Sept dcu checque.

Hopefully it will clear OK and i would be grateful if Hank would post whether the cheque is cleared or not.

I have DCUs in ISAs with 3 providers ...Lloyds....II and Barclays.

So far no sign of any payments,with any of them.

The DCUs are covered by a deed poll; signed by Prax Exploartion and Production PLC. (Prax E&P) which is now under administration.

It is a detailed 35 page document and contains the undertakings of Prax E&P and certain undertakings of Hurricane Energy which was renamed as Prax Upstream Ltd (Prax UL).As far as I know Prax UL is not in administration and has just been bought by Serica.

It is important to note that the obligations to pay the DCUs are obligations of Prax E&P and are unsecured

BUT

There are certain obligations of Prax UL which were committed to by Prax E&P but Prax UL did not sign the deed poll.

Firstly the Net Revenues of Prax UL upon which the DCU entitlements are calculated not only include the proceeds of oil production sales less costs of sale but also include the proceeds of any sale by Prax E&P of it holdings in Prax UL . These proceeds factor into Net Revenues when actually received. This was an obvious inclusion to prevent Prax E&P from wriggling out of its DCU obligations by selling the upstream operations.

There are also provisons binding both Prax E&P and Prax UL not to take any actions that would reduce net revenues and thereby reduce DCU payments.These provisions are very broadly constructed with only actions prompted by an emergency or disaster or govt action being excluded.

I am no lawyer but there is a lot of meat to chew on in these provisions.

To conclude

If the Sept DCU payment is ultimately forthcoming there would be good grounds to conclude that the sale proceeds of the Serica acquisition would enter the pot of the March 2026 payment if the sale proceeds are paid prior to March 2026.

If however the Sept 2025 DCU payment is not received then the game is over unless the DCU holders engage in litigation against the administratiors of Prax E&P ,,,,,an unlikely event.

If I receive the DCU payment vis Lloyds or Barclays, or II , I will post the news.

Once again Sensemann sums up the HUR debacle accurately.

The HUR experience shows how little integrity there is amongst AIM company directors and sad to say some contributors on this board.

Those who strongly supported the Prax take over despite the obvious fact that the company was bought with its own money in order to make a quick buck should be ashamed of themselves especially for the personal criticism of those who noted the effective steal of the company.

I also made a proft on HUR and invested the cash elsewhere that has hugely increased in value.But that is beside the point .Posted comments should be honestly made without a side agenda. The facts are clear. HUR would have delivered far higher returns to its shareholders had the take over not succeeded through 100% of net revenues instead of 17.5% . Those who argued in favour of the takeover should have the honesty to admit that.

The dubious integrity of the Prax owners only adds to the smell of the HUR affair.

I am still hoping that there are no intercompany loan committments between Prax upstream companies and Prax downstream companies that will remove our expected DCU payments .Given the history of Prax financial dealings i am hopeful but not confident. The committments to DCU holders are entirely unsecured ,

What worries me is that we have no information on any inter company obligations that may exist from the upstream entities in favour of Prax entities under administration . Given the dodgy practices of the Prax companies the revenue stream of the upstream entity must have been very attractive to the downstream entities under financial stress .

The obligations of the upstream entity to the dcu’s are unsecured. If inter company obligations exist , particularly if security was given could seriously impact the dcu’s. Hopefully there are none but where companies are in trouble nothing is off the table.

Some additional musing.

The principal supporter of the Prax takeover with big pockets was Crystal Amber .I believe that they sold their entire DCU holding,however if they form the view that their support for the takeover was fraudulently obtained then they have the resources to challenge the basis of the Lancaster revenue split.

On the other side of the equation the Prax creditors that include HMRC will be looking forward to the 82.5% of th Lancaster revenues that will flow into the Prax upstream operation and subseqently in the hands of the liquidators.

They will therefore strongly resist any change in those contractual arrangements.

As usual the private retail investors will have to watch from the sidelines.

The sky news report suggests that there are 2 energy groups interested in bidding for Prax E&P and that there is a bid deadline of next Thursday.

Goggle prax bid deadline and the Sky report will come up.

Carry , As you say , it’s not raining yet .The sheer complexity of the group structure is a concern …..but with luck that could work in our favour or screw us. Nothing to do now but wait and see if Prax E&P goes into administration. If not ,we have a chance. If it does I think that we have no chance .

The Prax group organisation chart is very complex with multiple subsidiaries. I cannot see the detail of which companies own Prax E&P and how much is owned by whom,but it is clear that it is owned 100% within the group.

IF PraxE&P has issued any gtees in favour of their companies currently in administration then the administrators will seek to cash in those gtees. If the gtees are secured then the administrator will take ownership of the security and seek to realise the security.If the gtees are unsecured and/ or the security is insufficient to meet the needs of the administrators then the obligations of Prax E&P under the gtees will likely rank equally with their obligations to Dcu holders. The DCUs have no priority over other unsecured obligations of Prax E&P.

Ofcourse the existance such gtees is entirely hypothetical and hopefully they do not exist.

The problem is the scale of the needs of the administrators which dwarf the DCU obligations.

No company HAS to sign a cross default or inter company gtee,but if they do then they work.

If the companies want to retain financial separation then don’t sign them.

Corry ,Yes it is exactly in line with my cautions.As you say we will have to wait for Prax’s latest accounts to see if they have taken in any debt or tax liabilities

But in addition I am concerned that any debt taken on within the group may have cross default clauses and most worrying inter company gtees that may impact Prax E&P.That would be standard banking practice .

I doubt that hmrc would have inter company gtees ,but I am not familiar with their practices. .

Corry,So you are assuming that Hurricane will stream their net revenue to Prax E&P that will fund the Dcu payments and that the banks and hmrc will be powerless to intervene.I hope that you are right.

At this point we do not know which companies owe the banks and hmrc and how much they each owe and what cross default and inter company gtees are in play. Even though as yet Prax exploration is not in administration,the question must be asked where will they find the money to pay the dcu’s if hmrc and the banks have a claim and have preference over the dcu’s

Carry, The deed poll does provide that in the event of a relevant sale (hurricane) the proceeds would be regarded as gross revenues of hurricane and would be used to calculate net revenues of which the Dcu holders would be entitled to 17.5%. But that is an obligation of Prax exploration to pay .So the question still needs to be asked where will Prax find the money after the claims of the banks and hmrc which have precedence get paid.