We would love to hear your thoughts about our site and services, please take our survey here.
Apology to all for line-spacing all askew making reading untidy. Inet & laptop problems both at same time. Likely worth a read in 1-4 order
(cont)
Then consider fair questions:-
(i) would accepting the October 2022 7.7p cash offer have left CEO & CFO in situ?
(ii) would ditto have earned Stifel & Dentons +$3.6 million fees via FSP?
(iii) how does the Scheme better the October 2022, when, inter alia, HUR has carried the risk for a further 8 months and four offloads?
(iv) what confidence can reasonable man have that CEO, CFO & Stifel ‘Scheme recommendation’ was in SHs best interests, rather than self-interest?
For all his limitations, Malcy’s comment was spot-on apposite.. But FWIW I take umbrage. Undisclosed, Malcy was paid when it suited HUR (pies cost money). But when payment ceased, why did Malcy remain silent until denouement and a too-late trite comment any PI could have written? Unlike us, he has an established public platform via which wider waves and truth may legitimately be made. Malcy preferred to keep his well-paid nose clean and is already sucking up to new cheapskate owners Prax. Malcy - shame on you.
Lastly, post-Meeting at The Clarence was surprisingly enjoyable. A meeting of pragmatic philosophicals, if you will. No angst or chagrin. Cognisant that all one can do is one’s best. Including Joe Black, trusting lady invested in good faith before the serial evils. And Ramesh, good-faith cautious in high but who found wonga & balls to buy armfuls at 1p-2p when all seemed lost & now safe/relieved but hugely disenchanted. All agreed nothing to be done but await NTSA approval decision and Court sanction date (to be announced), then consider if anything pragmatic may be done. Remember - Court still has to sanction Scheme - there remains perhaps a month for better offer to surface - and many a slip occurs betwixt cup and mouth.
End
(cont)
Folk never understand how genuinely effective a meeting can be with 20-30 activist SHs attending plus 1-2 PI-invited trade writers given free headline copy. We blew 18 April.
Hats off to PIs who despite buying low & being heavily in profit voted against the Scheme on basis of fundamental poor value & questionable ethics.
Disbelief at those crowing at calling a ‘fixed racing certainty’ correctly. And of one wishing Brent then at $72 to collapse below $65 & injure the DCUs & his own self-interest. Note - Brent today +$77 & 2 full months till next HUR offload. At just $80 HUR would have 7.9p cash by end 2023 net of AM 6 months escrow.
Those making disgusting personal comments against me may as well not bother - water off a duck’s back. My thanks to those making kind protective comment.
Those making disgusting comment on other matters – hang your heads in shame.
I reiterate ADVFN’s (much better than ours) dealing with SERIAL miscreant posting – simply ignoring - do not provide oxygen, utter silence speaks the loudest. An occasional one line reminder put-down is fine - engagement enabling forum hijacking is not. And whilst there is currently 1 loudest offender, there are 2-3 obvious subtler others.
THOUGHTS
I agree 404’s view folk should not be unduly dispirited. No shame in failing against impossible odds. Shame is never to try. A moment to draw philosophical strength from Kipling’s immortal words:-
“If you can meet with Triumph and Disaster
And treat those two impostors just the same;”
and quasi-comfort that in 2021 we helped, when the SP was 0.65, prevent a rogue 95% restructuring which would have rendered shares worthless.
The ‘fix’ was clear the instant the Scheme was announced. And HUR chose not to inform PIs of the ‘fairness remedy’ to the fix which would have ensured the court vote failed. The ‘fix’ sees:-
CA - get what it wants, after succumbing to low-Brent fever and/or Saba pressure & switching horses from Plan Albion to Plan Giveaway.
CEO & CFO - remain in situ as their 30 pieces of silver. But thankfully Prax stated to PIs on 18 April it had played both like fiddles, & should the Scheme pass, both would soon be removed.
Stifel & Dentons earn +$3.6million in fees.
Prax – get HUR for free after admitting on 18 April it’s bid was not fair value but low-ball constructed purely to win the ‘auction’.
PI’s – stiffed with a toilet brush, with the added pleasure of likely DCU tax bills rolled up inside the handle
If anyone remains naïve enough to consider the Scheme ‘fair value’ – consider that via it’s 2 November RNS HUR announced refusal of an unsolicited 7.7p p.sh cash offer. Should the Court sanction the Scheme, by legal-effective date effectively another four (4) offloads (Dec, Feb, April, July wk 1) cash will have been further accrued – minimally 3.5p p.sh.
(to cont)
(cont)
Me: This is my first awareness Malcy was paid to write about the HUR. Thank you for your reply which I will pass to PIs. It appears, Mr Maris, to be an awful lot of people, both investors and commentators, whose view of how the company has been run completely opposes yours. It is hard to see them all being wrong.
POST MEETING CHAT WITH BoD/Stifel/Dentons
dflynch & picsmaister spoke with David Craik (CA oiler NED nominee) whom I understand did not wish to be quoted – they will if minded post his overview. My takeaway from their comment being he was all-round unimpressed with HUR, Scheme, everything. DF & pics may also have spoken with others.
I spoke with:-
Juan Morero (CA analyst & fund manager, CA NED nominee) - for the first time. Who also did not wish to be quoted (one wonders why all so shy?). I was unimpressed. He was more intent on bending me to his will that the Scheme was better for PIs in all circumstance, and that PI’s risk threshold should mirror CA’s, than to answer fair questions. I stated I felt I was being parroted at & being talked down to. After having 3 questions blocked I asked if I he would answer a fourth and last. He refused to so I thanked him and walked away.
Chair Wolfe - stated he only recently bought shares because from June 2022 AGM till recent HUR had been in permanently closed period. I voiced scepticism. DF’s & pics’s later opinion was of disbelief. I agree. 4 months elapsed between end June 2022 AGM and 2 Nov 2022 RNS stating receipt of unsolicited 7.7p cash offer (refused). That period was not closed.
CEO Maris - joined Chair Wolfe & me whilst I opined that HUR should not have positively advised the Scheme to be good for all SHs when it did not know if the 21% PI block’s DCUs, mostly ISA/SIPP held, were taxable. CEO opined that HUR could not be tax advisors - not the issue but I let it pass. Responding to my comment that HUR need not be sold at all and question why the BoD did not refuse CA’s request for a FSP, CEO answered that CA 29% holding left the BoD no choice. At which point something visceral in me snapped – as at June 2022 AGM both Chair & CEO made great play of pronouncing to others & myself that even at 29% CA were ‘merely SHs’ with no influence on BoD decisions. We know, of course, Chair, CEO & CFO suddenly kow-towed to CA knowing that otherwise they would be EGM removed. I said to CEO:-
‘Mr Maris. You have an answer for everything, depending on the weather. Most PIs believe you should be behind bars alongside the CFO.’
CEO spluttered & with Chair about to step in I said (before walking away):-
‘Sorry, Mr Chairman, I’m not interested. I’ve heard enough garbage.’
OVERVIEW/ FORUM COMMENT SINCE
Vote results as expected. Also clear is some PIs sold due to DCU tax uncertainty. The last chance to properly hold the BoD to account was 18 April - though landing a few heavy blows it was an impossible task for only a handful of PIs.
(to cont)
Same as post 18 April - neither time nor juice to post till now. And no inet
ATTENDING
Computershare (Invigilator)
HUR BoD (all)
Stifel (several)
Dentons (1+)
PIs (circa 9) – dflynch, picsmaister, joe black, Ramesh, senseman + others
TACTICS
Arriving in good time we decided that given it was too late to affect voting & questions would be vanilla batted back by the BoD, to adopt the Olympian approach, enjoy coffee and biscuits, watch/take notes and limit questions – dflynch & picsmaister a couple of technicals apiece, and me a couple of curly ones. Given we knew PIs were effectively disenfranchised from the (crucial) court we put the odds of HUR not winning both votes at minor miracle level.
MEETING
Chair stated he held numerous proxy votes, which we interpreted as meaning the +$3.6million Stifel document bundles had persuaded institutions & grannies to row in behind the BoD.
We asked no questions pre Court vote - astonished Chair. Formalities concluded with flynchy (newly on HUR SH register), Chair & one/two others handing votes & proxies to invigilator.
Turning to Scheme vote, pics & dflynch each fired a couple if technical queries which they will report if minded (apology, I cannot recall details). I asked CFO one question and CEO another:-
Me (to CFO Chaffe): Please explain why, as CFO, you did not in 2021 buy bonds at 30c/40c in $ when HUR held $60-$80 mill cash that already was decided not to be risked on drilling? Particularly when the then Chair agreed with CA that doing so was a no-brainer and would be done. It was not done. Had you as CFO done the common sense an intelligent 10 year old would have, none of the ensuing mayhem would have occurred. and we would not need be here today.
CFO Response: Vanilla rhubarb x 5 minutes (buying bonds is not easy etc)
Me: Thank you for the expected vanilla response which I reject. You did not then buy a single bond. I can tell you now that the vast majority of PI’s consider your decision then as being criminally negligent.
CFO & Chair (indignant spluttering): Now look here……
Me: Having made clear PIs’ view, I am happy to withdraw any word which offended. It will not change the meaning and everyone’s understanding of what has been stated.
Me (to CEO Maris): Following HUR’s 2 May RNS, oil journalist Malcom Graham Wood wrote in Malcy’s Blog, which I assume you read:-
‘the fact that Hurricane was lying legs akimbo waiting to be hoovered up is a travesty of business justice that should never have been allowed to happen. ……. As a result, somewhere a company that could have been really something has ended up on the scrap heap of the wonderful North Sea, that shouldn’t have happened, honestly…’
What is your response to that comment?
CEO Response: We used to pay Malcom Graham Wood to write about us. But we haven’t for a while. He can write whatever he chooses. We don’t agree with him.
(to cont)
The Science Suite
Royal Society of Chemistry
Burlington House
Piccadilly, W1J OBA
Nearest tubes: Green Park & Piccadilly, location 5 mins walk from either
Arrive: Latest 9.30am (to allow time to chat with other PIs), cup of coffee and a biscuit
It is the last opportunity for those SHs on the Hurricane Energy Register of Shareholders, who have not yet voted, to vote.
Though unlikely to be a formal presentation or Q&As, there will undoubtedly be opportunity to ask Chair and other BoDs questions (i) before voting (ii post voting. Including specific details/information concerning the Sanction Hearing (date as yet unset), in the event HUR, against majority PI wishes, win both 4 May votes. Remember - HUR must have a judge consider all Scheme details and voting results before sanctioning (giving Court approval) for the Scheme to proceed. Hence 4 May is not fat lady singing time - that comes, if it does, 3-4 weeks later.
IT IS YOUR COMPANY - ATTEND IF POSSIBLE - MAKE THE EFFORT - DO NOT LEAVE TO OTHERS
PIs will likely decamp to The Clarence 4 Dover St W1S 4LB, 3 mins walk from meeting, when usual post meeting speaking with HUR execs/BoD ends.
Bloomberg
'The assessment aligns with the view of Bloomberg Economics, which estimates Saudi Arabia needs an oil price above $80 and perhaps closer to $100 to meet all spending commitments and ensure the stability of the social contract between the government and the citizens.6 hours ago'
Saudi (and most if not all OPEC+ countries need minimum $80 oil to balance budgets. Russia currently needs $110. OPEC+ will cut production further to maintain $80 if it does not recover from latest US banking squall within reasonable timespan. Also, India currently importing 4x Russia discounted crude than usual, refining, then onselling to EU (UK is biggest buyer) as petrol or diesel thus infilling 1mill bpd recently lost via Russia sanctions. Whereas this currently legal, Baltic states won't let this continue thus expect soon political pressure to close this India sanction loophole.
For these reasons (there are others) I would be most surprised even astonished to see Brent below $80 at next offload 2 months time (2 months is huge in oilspeak). Hence dismiss kevers at al's oil scaremongering. 2023 oil demand remains set to be highest ever. Always retain faith in bigger picture. We got $82 April offload. At $80 going forward HUR's P6 standalone cash projection figures remain nonsense.
And rattling ASI's cage so much is a bonus
x
Have a lovely evening Broomy
Been lovely to have rattled your cage so much
x
Yawn
You writing night is day fairytales will never make night into day, Who's doing all the ranting, Broomtree?
......knows he's gotten it spot on and pressing the right buttons when he gets such lovely comments from the con artists and liars
big kiss x
The Science Suite
Royal Society of Chemistry
Burlington House
Piccadilly, W1J OBA
Nearest tubes: Green Park & Piccadilly, location 5 mins walk from either
Arrive: Latest 9.30am (to allow time to chat with other PIs), cup of coffee and a biscuit
It is the last opportunity for those SHs on the Hurricane Energy Register of Shareholders, who have not yet voted, to vote.
Though unlikely to be a formal presentation or Q&As, there will undoubtedly be opportunity to ask Chair and other BoDs questions (i) before voting (ii post voting. Including specific details/information concerning the Sanction Hearing (date as yet unset), in the event HUR, against majority PI wishes, win both 4 May votes. Remember - HUR must have a judge consider all Scheme details and voting results before sanctioning (giving Court approval) for the Scheme to proceed. Hence 4 May is not fat lady singing time - that comes, if it does, 3-4 weeks later.
IT IS YOUR COMPANY - ATTEND IF POSSIBLE - MAKE THE EFFORT - DO NOT LEAVE TO OTHERS
PIs will likely decamp to The Clarence 4 Dover St W1S 4LB, 3 mins walk from meeting, when usual post meeting speaking with HUE execs/BoD ends.
Broom
You're as cra p a con artist as kever and as big a liar. You're both a disgrace. I didn't say kever SAID anything. I wrote:-
'Malcy writes HUR being given away it's a crime, only good for Prax - Kever thinks Malcy saying it's good deal for SHs.'
Take your time - you'll get there eventually.
PS. Did Kever post Macy's comment believing it didn't support his argument that deal is good? Of course not
The next relevant HUR oil date is start July 1st 5 days - full 2 months away. Today's matters squat
Malcy writes HUR being given away it's a crime, only good for Prax - Kever thinks Malcy saying it's good deal for SHs.
There is thick, thicker, then thickest.
Just read RNS
Didn't get start of April $84/$85 5 day average. Got end April $82 average. No disaster, we can live with that. Oil will rise. Storm been weathered.
Cash $132mill (end March) + $43mill = $175mill = £140mill = 7p p.sh
For accuracy deduct $10mill (HUR figures) April costs, April end cash ACTUAL $165mill = £132mill = 6.7p p.sh
Add circa $20mill escrow 6 months AM rent (yes it's ours, real) - ACTUAL CASH = 7.5p.p.sh = MCAP
Ergo - HUR CASH AS OF 31 APRIL = HUR MCAP
Disregarding AM 6 months escrow rent paid
Deduct $10 mill May costs + $10 mill June costs = $20mill (HUR own figures) - end June $165mill -$20 mill = $145mill.
BUT end week 1 July - offload (with all costs paid till 30 June), adds (at $80, will be higher) circa $40mill)
Ergo - end week 1 July: CASH = $145mll + $40 mill = $185 mill/ £148mill = 7.4p.p.sh
Add AM escrow circa $20 mill = $205mill/ £164mill = 8.2p p.sh
I refer readers back to my 26 April 10.28am post wherein it is showed that, using HUR's own $10mill pcm cost figures, even at $80 Brent, by end Dec 2023 HUR would hold circa 7.87p cash, NET of AM escrow 6 months rent circa 0.8p p.sh
"ACCURATE, TRUE P6 FIGURES - 7.8p cash @$80 by end Dec 23 - compared with HUR P6 standalone 8.07p 2026 figure
Cash at end March £130mill (HUR figure)
Costs $10mill pcm (HUR figure)
4 offloads due rest of 2023 - April, start/mid July, end Sept/start Oct, Dec
At $80: 80 x 92% = 73.6 x 540000 = $39.74 mill x 4 offloads = $159mill
Costs 9 months (Aprl-Dec) = 9x $10mill = $90mil
Cash increase April-Dec: $159 - $90 = $69 mill. Less $3mill FSP costs = $66mill
Current cash $130mill + $66mill = $196 mill
$196mill = £157.5mill (today's exchange rate)
$157.5 mill divided by 2 billion shares = 7.87p p.sh END DEC 2023 at ONLY $80 BRENT
At $85 Brent = $209mill = £168mill = 8.4p p.sh
At $90 Brent = $219mill = £176mill = 8.8p p.sh
NOTE - Above using HUR's OWN FIGURES CORRECTLY - position end Dec 2023
2024 - 4 offloads. Costs same (costs constant, production falling). NB - Likely actual 4.3 offloads, but figures for 4.
Brent $80: Add $39mill cash (£31.3mill) = 1.56p
Brent $90: Add $59mill Cash (£47.4mill) = 2.37p"
dflynch & others earlier opined the Scheme to be toxic, abusive, poison. I concur. And go further:-
The deal has been Stifel puppet-mastered to keep all happy - save for 21% Pis
Prax - get gifted circa $500 mill
CA - get it's 12.5 minimum necessity derisked exit price (over time) - CA's shares ain't in ISA or SIPP
HUR CEO & CFO - think they will remain in place - err...no u won't. At 18 April post meeting chat Mr Prax made clear to PI Prax not so stupid as to retain execs without brains enough to buy bonds at 30c/40c in $ in 2021 and save HUR +$150 million & near ruination AT A STROKE. In short - Maris & Chaffe deluded and Prax will sack them PDQ
Last - CEO & CFO bleated 18 April responsible BoD guided by worst case scenario. BALLS!. Fundamentally flawed. BoD job to make informed judgement cal
kama - well done on the 3.7 average
18 april CEO stated P6 now economic till Feb 2026 ie: 2yrs 9 months from now.
what's the bet it will be beyond Feb 2026? the CEO only states on sure things
it keeps extending (quelle surprise). part of the BoD 2021 argument was that non-economic would hit circa June 2022 roughly same time as bonds due
good flying summary
The Science Suite
Royal Society of Chemistry
Burlington House
Piccadilly, W1J OBA
Nearest tubes: Green Park & Piccadilly, location 5 mins walk from either
Arrive: Latest 9.30am (to allow time to chat with other PIs), cup of coffee and a biscuit
It is the last opportunity for those SHs on the Hurricane Energy Register of Shareholders, who have not yet voted, to vote.
Though unlikely to be a formal presentation or Q&As, there will undoubtedly be opportunity to ask Chair and other BoDs questions (i) before voting (ii post voting. Including specific details/information concerning the Sanction Hearing (date as yet unset), in the event HUR, against majority PI wishes, win both 4 May votes. Remember - HUR must have a judge consider all Scheme details and voting results before sanctioning (giving Court approval) for the Scheme to proceed. Hence 4 May is not fat lady singing time - that comes, if it does, 3-4 weeks later.
IT IS YOUR COMPANY - ATTEND IF POSSIBLE - MAKE THE EFFORT - DO NOT LEAVE TO OTHERS
PIs will likely decamp to The Clarence 4 Dover St W1S 4LB, 3 mins walk from meeting, when usual post meeting speaking with HUE execs/BoD ends.
kever has limited intellect
he fails to grasp the essential point that CA are for obvious reasons necessarily now operating to a different risk threshold that most PIs. most PIs have made clear they understand the risks and are prepared to accept a higher risk threshold than CA. until and unless he understands and accepts this fundamental intellectual point, it will be akin to debating with a penguin.
similar could said for the other 2 pedants. unless it's all just play-acting
hats off eski for making the trio work overtime