Member Info for Slift

"The next news is the case adjourned and restructuring proposal binned. I am loving seeing Slift/Mcadder/RNS/NGR and their supporters gone"

"hasiba
Posts: 4,576
Price: 1.20
No Opinion
Slift/Mcadder/RNS/NGRToday 12:20
Currently having EGM.."

Nothing has changed for HUR. The company is still insolvent.
If CA really come up with an alternative (note: replacing BOD is not an alternative) WITHOUT being detrimental to shareholders or themselves, then KUDOs to them.

But as it stands, currently no alternative plan.

Still a 5% or 0%.
With the EGM and actions to prevent the restructure plan, CA are taking the 0% option until they provide an alternative and time is running out.

Keepwell,

"Maybe not Slift, but it can be assessed and positively managed if the right people are in the right position."

Sure, and 4 potential ways to do that:
- Use the current forward curve (slightly higher than that when the restructuring proposal was put together)
- Use evidence of reservoir management to show that production guidance will be above that stated by HUR (c. 10k for 2021)
- Cut costs significantly to lower breakdown
- Provide alternative funding to to meet shortfall

Not much.

The financial situation of this company hasn't changed.

"OK, this will get a bit 'techie' but I hope the 'non-techies' will understand my drift, which I'll try to keep simple.

Coincidentally, simultaneously, in parallel with all the guff the BoD has recently published, there's a small bit about 'requesting permission from the OGA to produce at 300 psi below bubble point'.

What this essentially means (if accepted) they could 'open the taps wide' to the possible detriment of the reservoir, and if it meant pushing the FPSO to operational limits, maybe the FPSO itself. But well 6 is quite capable of producing 20,000 bopd, and even if there's 30% water-cut, the FPSO can handle that."

No. No. No. No.

The reason HUR required permission from OGA is due to potential gas cap formations and also to get approval for a less efficient production from Lancaster. Afterall, a lot of gas will now be flared for smaller production of oil.

Also, the BOD clearly project the reservoir pressure to drop 300 psi between now and until economic limit of the well.
No taps are going to be "opened wide".

Sometimes, I do question your technical knowledge lol.
Well 6 is currently running on ESP due to declining BHP pressure and to support lift. With production at below bubble point, there are risks to the ESP with gas production - including gas locks and erosion.

You seriously don't understand the situation HUR are in lol.

It's Game Over. 5% or 0%.

Same,
Didn't even email them and got the same email.

Lol,

With the amount of emails sent to government departments and regulatory bodies, Rishi is going to have to increase taxes again to fund the civil servants to read/investigate them.

But in reality, chances are most of the emails are gonna be binned.

adoubleuk,

"And getting old and cynical, and showing a sort of 35% 'paper loss', since buying back in, really don't care so much about the money, so much as the basic principles."

In your own opinion, what do you think your paper (profit/loss) is going to show in 4 days time?

Applecrumble,

"Slift, if you have really lost money here then join us. It may not get you your money back but for once fighting against the corrupt system will give you a sense of happiness."

Sure I lost some money here, but that was my own investment decision. I took a gamble on the downgrade of reserves/resources and immediately sold my shares when the downgrade was more than my expectations.

The writing has been on the wall ever since that downgrade.
Nothing corrupt about anything. The company has had negative equity ever since, and this was coming from a long way.
Nothing corrupt when the risk to investing here has been provided in SEVERAL RNS'. There is no value left for shareholders. There is nothing corrupt, and everything the BOD has done (in terms of restructure) is well within the Companies Act 2006.

No doubt people here will say the following are "in on the scam" when the restructure proposal is accepted:
- FCA
- SFO
- Judiciary
- Rishi, Boris and the whole conservative party
- Nicola and the whole SNP party
- CA
- Kerogen
- OGA
- Media
- etc etc.

mrc,

Not back peddling with working capital adjustments at all - guess you don't know how to read equations?
But sure, i'll admit i'm wrong (when i'm wrong) following completion of transaction.
Works either way for me, I have a decent holding here.

As for HUR BB, apparently they have no need for my input, but they sure have a lot of people with similar personality to you lmao.

Hey RosieNas,

Good luck with your 1020%....

"Let's pretend that that single well, Lancaster 6, was producing petrol (or diesel), not crude oil. OK, it's an absurd notion,"
Lol wtf?
This doesn't take into consideration of the crude distillation process nor it's costs. This is more than absurd.
If you want to "pretend" in the stock market, you might as well pull out your money lol.

"Back to our imaginary petrol-producing well. You know how long it would take for that to fill your tank ? About one second."
Lol.. "imaginary".
Now if you look hop back into the real world and look at it as a crude producing well, and actually give consideration to the crude refining process..
You'll find that 11.6k bopd of crude will fill a petrol tank of 60L in 6 seconds, and fill a diesel tank of 60L in around 12 seconds.
Or ofcourse, if you want to live in an imaginary world where you believe hurricane is a mansion full of diamonds.. then it'll be 3 seconds.

"adoubleuk
Posts: 12,611
Price: 0.70
No Opinion
RE: BoDToday 13:05
RNSnigwit,
" or do you think the OGA are part of the scam too?"
Yes, of course I do. Why P&A Lincoln ?"

LOL. You're deluded. You really are making yourself more of a fool everyday that passes..
Are you sure you're not PlantedBHA?

epiphany121,

I'm aware of the Magnus transaction. Except it clearly states that the transaction will be funded by cashflows from the effective date.

I'm all for something similar for GE transaction, but let's not assume that it's the same.

I do think there will be adjustment on the original purchase price (based on working capital at completion date), but doubt it'll be $100m.

Rather not be disappointed.

romaron,

"Slift 15.47 - that's another complication. Until Suncor vacate and we get the revenue directly we cannot use the tax losses."
and in response to your below posts on this thread..

Yes, it is a little complicated. But here's how it works.
Suncor will transfer GE asset to a newly formed company called "North Sea (Golden Eagle) Resources Ltd".
ENQ will be taking over the new company, rather than the asset. This allows ENQ to benefit from tax losses on aquisition.
The asset will then be moved to ENQ's subsidiary (Enquest Heather Ltd) from North Sea (Golden Eagle) Resources Ltd.

By doing so, The profits to ENQ of aquiring the new company, North Sea (Golden Eagle) Resources Ltd, will be offset by tax. Also, future revenue from the asset will benefit from tax losses by then moving the asset into Enquest Heather Ltd.

The working capital adjustments and consideration that ENQ will have to pay is a bit more complicated. I suspect this will be based on North Sea (Golden Eagle) Resources Ltd's accounts (which will likely be produced at half year?).

"Slift - the purchase price will be adjusted by post tax cash flow FROM GE from the 1st Jan 2021.
Right or wrong?"

Wrong. Adjusted upwards or downwards based on working capital and other adjustments.

mrc,

No, I don't believe i'm wrong.
Here's quotes from AB himself:
"Upon completion, this acquisition will add immediate material production and cash flow to EnQuest and will allow us to accelerate use of our substantial tax losses."

Now off on your bike.

Therapist,

"economic effective date" this is for ENQ, i.e. the cashflows will be accounted for from 1st Jan 2021, rather than from announcement of transaction.

"immediate incremental prouction" - when transaction completes in Q3.

Simple Equation for transaction:

$325m (+/- $A m for working capital/other adjustments at completion date) = $B m from headroom of RBL facility (from increased reserves) + $Cm FCF (ENQ FCF - tax at interims result that is) + $D m equity raise.

Therapist,

"interim period post-tax cash flows between the economic effective date of 1 January 2021 and completion"
ENQ's cashflow.

mrc,

Why do you even respond to my post? Everytime, i've clashed with you and do not wish to respond to you at all since I don't believe you even know what you're talking about.
You certainly have your calcs wrong and are nothing but a ramper.

epiphany121 and londoner7,
ENQ are not receiving GE cashflow until the transaction completes.. nor will it be taken off the transaction deal.
No idea where you are reading this, but I do understand that ENQ will benefit from c. $100m from tax losses.

adoubleuk,

You're posting as if bubble point pressure is a "new" issue.
Heck, it's been discussed about here since a year ago and has always been a problem going forwards (and why water injection is required - which you seem to dismiss as just nonsense talks).

HUR have asked for consent from OGA for up to 300 psi below bubble point pressure.
I think AM does have some capacity to be flaring in accordance with the permit, but as you say, the gas volumes could rise significantly as the pressure drops.

Game Over.