Member Info for Slift

DiveCentre/Adoubleuk,

In regards to Lincoln.. I think the commitment well was also a requirement for tie-back - as without the commitment well, the License will be relinquished in a years time.

I don't believe Spirit/HUR approved/sanctioned the commitment well for whatever reason.

More like since friday lol

Hi Botbot120268,

I noticed you provided advice previously regarding capital gains tax. I'd appreciate it if you (or anyone else on this board) could advise me on the best way forward to reporting my capital gains.

I have losses in 2019, and gains in 2020 which I need to report to HMRC via a self assessment tax return form (I will most likely use the gov services to fill an online form out).

The questions I have are...
1. I am employed and majority of my income taxes are dealt with by my employer. Do I need to refill the employment section of the self assessment tax return form or am I only required to fill in the capital gains?
2. I have traded (and disposed of) a number of shares over the past year, and filling out the computation worksheet seems daunting and time consuming. I do have a spreadsheet to track my overall gains and losses. Could I just skip all the questions and just attach the spreadsheet/PDF showing the overal gains/losses?
3. Is there anything else that I MUST DO?

Thanks.

"To me, that indicates that current OWC is more around 1240-50m."

In fact, as of the 10th May, I estimate the OWC currently to be at c. 1275m assuming linear relationship between coning, watercut and pressure drop.

DiveCentre,

"Ever wondered how predictions of an o/w level subsequently turned out to be the same as that in the technical review and CPR. Strange isn’t it."

Come on..
You have well 6 @ 1211m
You have well 7z @ 1330m

The 10th May Operational update indicates that:
Well 6 is producing at 28% watercut (due to coning)
Well 7z was producing at 81% watercut (coning oil)

To me, that indicates that current OWC is more around 1240-50m.

The data ERCE used to calculate their OWC was with the same data HUR used for their technical review (i.e. the last time 7z was producing).

If you really think that the OWC is much lower... then you're not questioning the CPR or the geology but you're questioning physics - Newtons' Laws, Bernoulli's principle and all that.
So good luck with that lol.

"Winding down - insolvent as at 4th June 2021
Extension of bonds/production beyond 4th June 2021 - solvent"

4th June 2022*

Agreed mcadder.

Time has run out.
You simply cannot change the financials, structure of the company and a plan of action at 11:50pm before it strikes midnight.

Any changes made will have an equal or similar effect to equity.

garyn,

Okay fine, i'll give you that!
It's not official yet.
But if it is decided that the company would be wound down (rather than bond/production extension), then the net current liabilities would exceed net current assets, within a 12 month within the next 12 months (as at 4th June 2021).

Basically:
Winding down - insolvent as at 4th June 2021
Extension of bonds/production beyond 4th June 2021 - solvent

Just for your reference garyn:

"Following the initial conclusions of the Technical Review (see above), the associated downwards revision of estimated recoverable reserves and the decline in oil prices during the year, a non-cash impairment charge of $238.9 million has been recognised against the producing Lancaster oil and gas assets. The impairment charge was calculated based on expected future cashflows from the Lancaster EPS, using a number of forecast production profiles (both with and without the cost and benefits of a water injection programme) and probability weighted according to our best estimates of the most likely outcomes. For further details on the impairment charge, key assumptions and methodology used see notes 1.4.1 and 2.3 to the interim financial statements. These estimates and assumptions are subject to risk and uncertainty, and therefore changes to external factors and internal developments and plans (including the sanction or otherwise of any water injection programme, an updated CPR assessment of the Lancaster field, and any other intervening developments) have the ability to significantly impact these projections, which could lead to additional impairments or future reversals in future periods."

Also Halifax has been written off and a whole load of write offs since HY2020.
Not to mention decomm, less than expected 2C resources from CPR (in comparison to tech review) etc.

All makes the company insolvent.

garyn,

Wrong. There is negative net assets currently as the FWP has not been sanctioned.
The HY20 accounts takes into account P8 and water injection being implemented.

Now that shareholders are given the vote, and the there is likelihood that shareholders will not approve the restructure due to there being too many deluded and dumb shareholders..
It is officially GAME OVER.

0% is the most likely outcome.
Equity is worthless.

Adoubleuk,

"And HUR is not currently insolvent."

No. You're wrong.
HUR is insolvent.
Look at the financials. That's all you have to do. The company has a negative equity. Bondholders won't be paid back in full. Therefore insolvent.

You're simply lacking financial knowledge/accounting here.

Wow well done all.

You now decide whether you want 5% or 0%.

HeidHoncho,

1.
Yes, Hurricane did have a decommissioning bond from the 2017 fund raising.
However, as of Oct 2020, the decommissioning bond was terminated. See extract below:
"In accordance with the terms of the decommissioning bond agreement, and given the fall in oil prices earlier in 2020 and the recent downward revision to the Lancaster field's reserves, the bond provider has requested that the Company provide cash collateral for 100% of the bond's value, as a result of which the Company would derive no benefit from the bond while still paying fees to the bond provider. The decommissioning bond has therefore been terminated by mutual agreement.

Consequently, the Company has reverted to the arrangement in place prior to the decommissioning bond, whereby £16.8 million ($21.7 million) of cash security will be held in trust in order to continue meeting the obligation to provide post-tax security for the estimated cost of decommissioning the production wells, subsea infrastructure and related FPSO costs for the Lancaster Early Production System. Accordingly, $21.7 million of the Company's unrestricted cash has now been reclassified as restricted cash. "

2.
I understand what you are saying, and very logical. You will be correct that the Spirit would free carry the P&A of the well in normal circumstances.
However, should HUR wind down (i.e. if the bond is not extended), then there is a 50% liability to HUR on the P&A cost of the well (gross $13m) which Spirit have the right to claim.

adoubleuk,

"Hurricane has contracted a rig for three months ? P&A of Lincoln shouldn't take more than a couple of weeks."
"A quick trawl around my usual sites indicate no activity proposed by Hurricane nor Petrofac (their usual consultants), nor any rig leased to them."

Following the comments, I had a dig around. I did find another rig, however, just doesn't add up for the Lincoln well.

The Maersk Resolve - Contracted by Spirit to do one well, with the option to add P&A of one well.
The problem with this rig is that I don't believe it's suited to Lincoln well - mainly because I think the Lincoln well has a higher water depth than this rig can handle?

Nonetheless, another potential rig for the Lincoln P&A.

HeidHoncho,

1. $23.5m of that $39m decom is already ring fenced as at April 21.
The remaining $15.7m of decom is being moved from free cash to Ring fenced decom THIS MONTH.

2. $13m is GROSS cost to decom of Lincoln crestal well. The JV partner is responsible for 50% of the cost.
HUR's cost for this is $6.5m which HUR will have to fund from free cash or FCF.

There's a bunch more costs to be accounted too (including wind down cost, CAPEX, restructure etc which I won't go into detail).

Hope that clarifies 1 & 2.

adoubleuk,

You're arguing and complaining about the reference/label HUR have used for their new well... It's JUST A REFERENCE as the well hasn't been sanctioned.

The company has much bigger problems to be resolved on the financial end. Whether the well is called P8 or P7y or whatever makes zero difference. ZERO.
Do you have an alternative to the 95%/5% restructure to keep the company solvent?

lol hasiba.

Here's the proper contact number and email if you'd want confirmation of my statements:

Cenkos Securities plc
Nominated Adviser: Nick Tulloch / Derrick Lee +44 (0) 131 220 6939
Joint Bookrunner: Stuart Galvin +44 (0) 20 7397 8932

Stifel Nicolaus Europe Limited +44 (0) 2077663 3202
Joint Bookrunner: Michael Coakley / Christopher Thurn +44 (0) 207 7663 3210

Evercore Partners International LLP +44 (0) 207 653 6000
Financial Adviser: Jim Renwick / Gent Kadare

wellsite,

Agreed.
I think everyone here and everyone aware of Hurricane's activities are already aware that the well P8 is the proposed "sidetrack".
So until it is sanctioned, it can be named whatever (in this case P8) for references only.

hasiba,

You've been buying in here from 10p.
So sit down and be a good boy.
You're also talking bs regarding investor relations confirming that.

There are provisions to prevent buying of bonds on the market.
But hey, keep being deluded and lying on this BB to get new investors to buy just so you can offload your shares LOL.