Member Info for schlemiel

It's 22.6% of CA's fund not 22.6% of the equity stake in Hurricane fella. The two are different references altogether

had released this news the buying interest would have returned big time. It's only a matter of time before the BW extension and this event is another derisking event as is bond buyback

I suspect the strategy is bond buybacks and then a placing to cover the rest and then it's bags of free cash for the shareholders and maybe water injection at Lancaster to ramp up production

The two new directors are CA appointees. That's all I need to know about who is now in charge of this company

The new company policy of buying back bonds in the open market is a game changer for it reduces existential risk and derisks the company in the eyes of investors.

Smash Lancaster until it runs dry, generate max FCF to buy back bonds and equity claim should exceed debt claim meaning the shareholder benefits and not the creditors

Buying back the bonds in the open market it seems is now the company strategy. The less debt we have the greater our equity and claim to future cashflows and higher asset prices.

This new direction for Hurricane is mega as it lowers market risk and makes us more attractive to investors

'Crystal Amber further notes that actual production for June 2021 exceeded Hurricane's forecast with 10,640 barrels per day being produced as against a budget of 9,700 barrels a day'

This is before the shutdown of the FPSO for maintenance. Is this the stabilisation BOPD rate referred to in the last Lancaster update? I hope so!

https://www.lse.co.uk/rns/CRS/monthly-net-asset-value-pdvjplp6ucrr7kc.html

' On 28 June 2021, in his judgment, Mr Justice Zacaroli stated that Hurricane is profitable and anticipated to remain so for at least the next year, that Hurricane's evidence was that the P6 well is likely to remain economically viable until early 2024 and that there are reasonable grounds to believe that Hurricane will be able to negotiate an extension of the Charter on terms which enable it to continue extracting oil from the P6 well beyond July 2022. Crucially, the Court found that there is a realistic prospect that Hurricane will be able to discharge its obligations to the bondholders. The High Court of Justice therefore rejected the highly dilutive and costly restructuring plan.

On 30 June 2021, Hurricane's five non-executive directors resigned with immediate effect and in their stead, directors nominated by Crystal Amber, Alan John Wright and David Craik were appointed to its board, with Mr Wright installed as Interim Chairman. As a result, the general meeting scheduled for 5 July 2021 was no longer necessary and Crystal Amber therefore withdrew its requisition.

Crystal Amber regards Lancaster as one of the most prolific production wells in the North Sea. Crystal Amber would refer market participants to Hurricane's Restructuring Business Plan Presentation dated 24 May 2021, which is available on the company's website. The presentation sets out Hurricane's long-range forecast of production from its existing P6 Well. By February 2024, this is estimated to deliver 8.4 million barrels of oil. Based on the forward curve for oil prices, this would generate approximately $600 million of revenue. Based on historic margins, this would deliver operating cash flows of in excess of $250 million. Crystal Amber further notes that actual production for June 2021 exceeded Hurricane's forecast with 10,640 barrels per day being produced as against a budget of 9,700 barrels a day. Were this trend to continue, a further $28 million of revenue would be achieved, in addition to the $285 million expected over the next 12 months.

During July 2021, Crystal Amber has been in regular dialogue with the newly constituted board of Hurricane. Since September 2020 (when the convertible bond was trading at a 70 per cent. discount), Crystal Amber has urged Hurricane to use a significant proportion of its cash to buy in bonds. The High Court of Justice stated that "the possibility of buying back bonds in the market is, on the face of it, an attractive one, given that the Bonds have been trading at a substantial discount to face value." On 5 July 2021, the bonds were trading at a 50 per cent. discount but the discount has recently narrowed to 37 per cent. Crystal Amber has requested to the board of Hurricane that it immediately embarks on a substantial purchase of these bonds. As well as saving the payment of the annual interest rate of 7.5 per cent., buying back bonds at a discount, will significantly reduce Hurricane's net indebtedness. '

lutho

No problem. I don't hold now which saddens me but I can't afford to hang around in a stock for years and years. Personal circumstances rather than SOLG fundamentals requires me to find a stock that gives me almost immediate upside before I literally expire

GL

https://stockhead.com.au/resources/diggers-and-dealers-five-questions-for-pcf-capital-groups-liam-twigger/

'If you’ve tried to sell a gold mine in WA, or anywhere else for that matter, you’ve crossed paths with Liam Twigger.

The managing director of boutique corporate advisory firm PCF Capital Group, which is soon to merge with WA stockbroker Argonaut, Twigger is a respected voice in the local mining industry.

After 27 years attending Diggers and Dealers Twigger finally made his debut on the Goldfields Arts Centre stage, presenting as the chairman of London-based Ecuadorian copper-gold explorer SolGold.

But make no mistake, he was likely to be just as, if not more, active on the sidelines of the conference working on the next big deal.

Stockhead caught up with Twigger yesterday to ask him where M&A activity could come from now in the resources sector and who he thought shined at the famous Kalgoorlie mining forum.

cont............

I had a million GGP at 1.75 and sold for a small profit but did get back in with 500k at 5p when the market woke up to the fact that Havieron was something very special, a Tier 1 asset and near time monetisation but GGP's falling percentage ownership of the licence has caught some buyers unaware

Edgein's a buyer of CORA. He's a knowledgeable poister on ADVFN

Osborne appeards to have spoken to both Bernstein and the ex-Directors of the company. To use terms like 'side-deal' and 'bribery' ('But at least bribery, which to be clear Hurricane strenuously denies') is pretty strong stuff.

Hurricane 'strenuously denies bribery'. Who has accused them of bribery and why do they feel the need to be so defensive if they have nothing to hide?

The fact that such claims are being made by and indeed through journalist at the Times does suggest an element of suspicion.

I bet Bernstein and Osborne have spoken. More to come here on this issue

They have the two old Directors by the cojones

I wonder if Bernstein does have evidence of subterfuge? If someone impugned you in such a manner you would surely threaten to sue UNLESS of course evidence did exist of collusion. The fact that no members of the previous board haven't done so?

Leverage being applied to those 2 still in HUR employment

The end of day cumulative buy-sell figures are nonsense so I'd ignore them.

It is obvious from this article that someone has indeed suggested TO the previous Hurricane baord that there are suspicions that they may have had accepted inducements from the CONVERTIBLE bondholders to drive this restructuruing through to trigger the debt-equity conversion and destroy the incumbent shareholders to in effect steal the company

They feckin concocted a doomsday event backed without the evidence and were exposed by Zacaroli

We now need the new board to uncover the scam and remove the uncertainty

I haven't seen this article from The Times as it's behind a paywall but CA's put it up on their site -

Publication: The Times

Alistair Osborne

Anyone might think Hurricane Energy’s imploding board was in line for a bung from the bondholders. Float the notion of a “side-deal” and a spokesman for the Aim-listed North Sea oil outfit declares: “It is truly ridiculous to even posit it.”

Apologies for being ridiculous. But at least bribery, which to be clear Hurricane strenuously denies, would have offered an explanation for the board’s bizarre behaviour over the past two months. Under chairman Steven McTiernan and chief executive Antony Maris, it cut a deal to all but wipe out the shareholders, giving 95 per cent of the equity to bondholders. And all to pay off just $50 million of a $230 million debt, due in July next year. On Tuesday, a High Court judge threw out the plan: the cue for the five non-execs to resign en masse.

Their plan was outrageous: a point driven home by activist investor Crystal Amber, with 14.2 per cent. Yes, Hurricane’s operations in the Lancaster field, the first to produce from a “fractured basement reservoir”, has had setbacks. And the debt must be repaid. But, whatever Hurricane says, there is nothing in the “directors’ fiduciary duties” to compel them into such a one-sided deal. Or for them to run up a ludicrous $17 million in legal and adviser fees pursuing it. Or for McTiernan to try to strong-arm shareholders into it with dark warnings that the alternative was “insolvent liquidation”.

Luckily, Crystal Amber put up a fight, calling an EGM that’s no longer needed to oust the non-execs. And the judge agreed that, with the oil price up to $75, there is a “reasonable possibility” the funding gap “could be bridged”. Two Crystal Amber nominees have now joined the board, one as chairman — even if Maris is still in post. And, yes, it needs to raise cash and strike a deal with bondholders. Even on shares up 29 per cent to 3.6p, it’s valued at just £72 million. But you’d expect a better deal without McTiernan and his cave-in crew.'

Winnifrith stooges, pair of 'em

oil prices taking a hit explains the weakness here, certainly not company specific

And of course Bernstein's taken CA's stake beyond 25%. While we have seen the previous board colluding with bondholders to steal the company from the shareholders using any and all forms of insidious tactics. I'd say someone stills see real value here

'1. Will the reservoir continue to flow/ Still highly uncertain.'

Is this a serious assertion? Horse-cack more like