Member Info for Slift

There's 4 variables in the transaction:

1. FCF at completion
2. Time of completion
3. Debt capacity secured under new RBL (based on reserves and reserves audit)
4. Placing value of shares (I see this as funding the "remainder" following 1-3 for the required $325m)

Romaron,

I think AB mentioned 2023 as the timeline for dividend, but the company is more focused on debt reduction and servicing both the new RBL facility and the HYBs with cashflow from now and until then.

How I look at this transaction is..

ENQ requires $325m by Q3 2021.
The finance of this will be from FCF between Jan 2021 --> Q3 2021 = approx. $240m (at time of transaction announcement), approx. $270-280m (if current oil price and estimated production is kept to end of Q3/21).

But looking at the $240m FCF scenario, ENQ will still require $85m to fund the transaction.
Of the $85m, I suppose $35m would have come from the new RBL lending facility (the increase in debt due to increased reserves from GE)
The remainder (again in the above case), $50m will be funded by a placing.

adoubleuk,

Pretty sure that i've highlighted how bad the FWP is in the past and how incompetent the BOD are.
I'm not advocating winding up the company, but it's too late and there are no alternatives other than a restructure with bondholders to extend payment.

Unfortunately, incompetence isn't a criminal offence. Shareholders had the right to call in an EGM to remove incompetence over past year, but didn't.

adoubleuk,

"Alternatives to the Restructuring Plan "

I see potentially 3 alternatives - but each is either too costly (unless someone takes a big loss), or too late.
1. Major shareholders, instituitional investors, shareholders and/or new investors take a hit by funding non-viable projects (We know that they couldn't get funding from major shareholders, and no new investor/ii will invest just to make a loss)

2. A takeover offer by a 3rd party who sees value and could potentially develop the fields with a more attractive FWP (It's too late for this as restructure taking place in the next month or so, unless takeover offer comes in the next month.. but again whoever puts in the offer will be SIGNIFICANTLY overpaying).

3. HUR BOD come up with a more attractive FWP which will receive funding from ii, major shareholders, etc. (Too late for this now, they've wasted a year).

adoubleuk,

"drill another well, or to tie-in Lincoln"
No and No.

Another well:-
Drilling another well wouldn't pay back cost to drill. Bondholders will not sanction that, and investors would not fund it.
Do you even read what's been posted here, or are you still in your oilfield dreams from the past?

Lincoln:-
You printed out ERCE's CPR and kept it on your desk but didn't read it?
Clearly states that there is uncertainty regarding Lincoln due to it sharing the same aquifer as Lancaster.
In other words, water injection is required before any tie-backs. But that's not all..

The JV is required to drill a GWA commitment well by June 2022. This had to be sanctioned - Spirit clearly did not want to fund or make an investment for the GWA commitment well - and hence, the Lincoln Crestal well is being P&A'd in accordance with license commitments.

Also, any further investment in Lincoln (like Lancaster) wouldn't have paid back the investment. So isn't surprising that Spirit didn't agree to make any future developments on this field.

So bottom line: Both "alternatives" were not viable due to either funding or regulatory consents/commitments.

investment gains for breakeven*

RosieNas,

"RosieNas
Posted in: HUR
Posts: 384
Price: 6.74
No Opinion
RE: It won’t be long they are just playing with it.01 Jun 2020 20:34
Absolutely, many holding in 20s. 30s and 40s too scared to average down."

6.74p?
Good luck getting 1020% investment back here lol.

adoubleuk,

There are no reserves. As NGR1616 has said, the reservoir is not viable.

Masters in Chemical Engineering.
Various experience working on multi million pound projects for blue chip companies in a project engineering/project management role.

The Lancaster development does not pay back the initial investment. The project is not viable.

Adrianuk,

"Slift, I'm AIM Stock Guru, if you have a problem with me, I suggest you grow some *******s and let's take it into the ring."

What kind of ring we talking? A sumo ring?

"You ever taken 32 hours nonstop doing a two-stage cement-job in the rain in Gabon? Or 72 hours nonstop for a platform -move in the Adriatic?"

Lol.. is this something to be proud of or something..?
I do 7 hours of work during weekdays. I'd rather go teabag a cactus than work more hours rofl.

Aim Stocks Guru = Adoubleuk?

Nice letter you wrote. It's in the description of Aim Stocks Guru's video LOL.

https://www.youtube.com/watch?v=NkgX40e6lvU

LOL

adoubleuk,

"Slift,
"But just remember this from me: It's 0% or 5%. Fight for 0% if you want."
Stupid, stupid, stupid."

Sure, we'll see on the 11th June and 18th June.

Googling galley rat came up with that.

God i'd hate to work offshore.

https://cdn.theboatgalley.com/wp-content/uploads/Mouse-aboard.jpg

adoubleuk,

"Because my take on things is that there are some very angry people around, and that they're not going to take this scam lightly.

Defend it (with your friend mcadder) as much as you wish, but others think otherwise, and are acting upon it."

Fair enough.
But just remember this from me:
It's 0% or 5%. Fight for 0% if you want.

Lol.

"However I do hope that the person appointed is reasonably aware of matters involving the oil and gas industry, particularly on the UK Continental Shelf, the potential 'stategic importance' that might hold for the nation, and is not simply versed in corporate financial law."

Lmao.
It's a restructuring mate. Ofcourse it'll be someone who would be more corporate financial orientated rather than someone who can read a CPR or use O-rings in between valves or vessels.

Also
"current shareholders in Hurricane Energy plc are very unhappy that such a hearing has been convened, without any consultation with they themselves."
Lol, again, in accordance to Companies Act 2006, there is no requirement for consultation with shareholders in this matter, as this is a financial restructure between a company (that is in financial distress) and bondholders, initiated by the company under the UK Restructuring Plan.

It's quite amusing how all these emails sent to relevant organisations... but not one has an alternative plan to the restructure to save the company.
To me, it just looks like you're all begging for your own investment decisions.

Sanction hearing on 11th June.