Member Info for schlemiel

'it is time to handover the reigns'. Illiterate or a deliberate faux pas

Ward's gone as well.

Feck me. It's either a purging or jumping ship...

Market cap £155m with free cash at £73m. £82m covered by future free cashflow and other assets

Keep building that cash balance until P6 is dry using the cashflow to invest elsewhere

Hurricane Energy plc, the UK based oil and gas company, provides an update on Lancaster field operations and net free cash balances as of 31 July 2022 following the lifting of the July cargo.

Lancaster Field Operations Update

The following table details production volumes, water cut and minimum flowing bottom hole pressure for the 205/21a-6 ("P6") well during July 2022.

July 2022 Lancaster Field Data


P6 P7z(1)
O il produced during the month -
(Mbbls) 258
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Average oil rate (bopd) 8,324 -
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W ater produced during the month 224 -
(Mbbls)
------ -------
A verage water cut(2) 46% -
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Well gauge p ressure (psia)(3) 1,556 -
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1. The 205/21a-7z ("P7z") well was not on production during July 2022

2.Expressed as total water produced divided by total fluid (oil and water) production

3.Pressure reported is the monthly minimum from well downhole gauges.

As of 9 August 2022, Lancaster was producing c.8,400 bopd from the P6 well alone with an associated water cut of c.47%.

The 30(th) cargo of Lancaster oil, totalling approximately 534 Mbbls, was lifted on 24 July 2022. This cargo was priced by reference to the average of the last five days of July's Dated Brent quotes, being $111/bbl, resulting in net revenue of $60 million.

The Company will be carrying out its planned annual shutdown during September with the next cargo anticipated to be lifted in October 2022.

Financial Update

As previously reported, during July 2022 the Company repaid in full its outstanding $78,515,000 7.50 per cent Convertible Bonds plus $1.5 million of accrued interest and is now debt free. As of 31 July 2022, the Company had net free cash(4) of $89 million.

4.Unrestricted cash and cash equivalents, plus current financial trade and other receivables, current oil price derivatives, less current financial trade and other payables.

I like the term 'commercially viable' and references to 'US Shale'

'Since then, strong and stable gas production rates, coupled with slowing water production, have given the Empire team enhanced confidence that we are rapidly approaching demonstration that the project is commercially viable, particularly given the significant cost advantage compared to other parts of the basin.

We don’t yet know which of the 21 stages is giving us the strongest production rates, and therefore which fluid system will drive optimal production and cost performance in development scenarios. We will gather and analyse this data in the coming weeks and months. However, our preliminary view is that it is highly likely that some stages are generating more production than others.

These learnings, to be incorporated into our completion design for Carpentaria-3H, are likely to drive even stronger production rates in that well and future wells, consistent with the learning curves that were achieved across the major US shale basins.'

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Top stuff...

Is this the flow result that will finally unleash Beetaloo and convince the market that Beetaloo's the real deal?

just popped up

m83

Zero debt, zero debt, zero debt. That removes the existential threat to HUR. Crystal Amber will want to see max value for their 29% stake after holding for so many years.

Cash balance is increasing daily. Hefty free-cashflow straight into the bank and no doubt at some point in early-mid 2023 cash equalling the entire market value of the company.

I'm waiting, like most on here, for the next company update that hopefully will point the way forward for Hurricane

Other than the uncertainty of the oil price and the caveat relating to P6 longevity then I see no reason to sell just yet

The end game is surely either a takeover, a JV or maybe wider Lancaster development....

but what do I know. There are far wiser voices on here than me

HUR and Spirit said that 'financial constraints' justified stopping the development of GWA Lincoln and returning the licence back to the authorities. This is a well that flowed 10k bopd of light oil - I just don't understand the logic of this. Beyond logical but I'm sure there's a political reason somewhere lurking like everything today

From 2019 -

'A positive sign arrived on Monday, when Hurricane confirmed the well had produced oil to surface.

And yesterday, in another update, Hurricane chief executive Robert Trice said he was “delighted” with Lincoln Crestal’s performance, sending the firm’s shares up 5.17% to 47.64p in London.

Dr Trice said the well had achieved a maximum stable flow rate of almost 10,000 barrels per day.

He said the well confirmed the presence of light oil which can be produced at commercial rates and that Lincoln Crestal would likely be tied back to Aoka Mizu next year.

That would make Lincoln the second producing basement field in the UK, after Lancaster.'

https://www.energyvoice.com/oilandgas/north-sea/207635/lincoln-well-a-confidence-boost-for-greater-warwick-potential-analyst-says/

I wonder if HUR is looking at this or maybe a producing gas asset :

'The Parkmead Group (PMG) announced the launch of its Greater Perth Area farm-out. Gneiss Energy has been retained to manage the process of finding a suitable partner in relation to the company's 100% interest. The core Perth field holds approximately 55 million barrels of recoverable oil equivalent on a most likely, P50 basis and the area is one of the North Sea's largest undeveloped oil projects, having been fully appraised and the fields flow tested at rates of up to 6,000 barrels per day.'

'Hurricane Energy (HUR) announced repayment of its convertible bonds, amounting to a total of $78,515,000 plus $1,500,000 accrued interest. This leaves the company debt free, with significant cash on hand, further cash due from the July lifting and ongoing substantial cash generative production from the Lancaster field. Having been almost written off by the board not too long ago, now comes the task of building a long-term future for the company and significant acquisitions can be expected.'

https://oilman.substack.com/p/sunday-blog-7-august-2022?sd=pf

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I hope OJ doesn't mind me posting this update from his blog

Mirasol

That doesn't make business sense. Surely Bernstein's objective is to make max CA's sale price rather to be seen an investment that the buyer would potentially view as risky and therefore attract a much lower price. Bernstein's aim therefore would be to make CA's HUR stake as valuable as possible by encouraging the board to put the company on a path to total recovery, and then sell their HUR stake as it rises in value over time

ronwoking

Does Bernstein have an idea as to what HUR's fair value is?

I did read somewhere but can't remember where now, that CA is aiming to divest by end-2023. Will CA push for a sale of the company or simply seek out a buyer for their 29% stake?

It seems likely that without any major capex the company's cash balance will equal its market capitalisation in the next 6-pm months. Adding in some commercial value for tax losses, further P6 cashflow and upside from developing wider Lancaster and it all adds to value in excess of current value with the usual proviso of POO volatility and P6 reliability...

the risk is to the upside ceteris paribus

for 250k

we have a buyer

asi

I haven't the energy to argue the toss with you fella. My opinions are neither not there. Go and find an argument somewher else

cheers

to sell 250k...buyer hovering

There's no CA overhang. CA is an institutional investor with a stake of nearly 30%. That's not an overhang. If they do intend to sell their stake they're gonna do that off-market. It is simply unfeasible to suggest that they can offload any significant stake into the market

The market is merely waiting for company news to point the way forward and it doesn't help with OPEC+ sending confusing signals to the market

nm

Did Beetaloo escaped unharmed? I think it may have but still cannot find absolute confirmation

I don't believe Bernstein's come this far to see CA's 29% investment in HUR be rogered up the pooper, If you'll pardon the vulgar vernacular