Member Info for Slift

Adoubleuk,

I think you're just lacking a bit of finance knowledge here.

"The accounts must be audited prior to any financial restructuring."
The auditors obviously didn't consider the company as a going concern.

"What's with the 'overpaying' bit ? Buying it up at a bargain price, more likely."
I'll let you figure this out.

RosieNas,

Because I can. Try stopping me ;)

hasiba,

I bought at 5.8p, sold at 3.3p @ 20% of my portfolio.
Made that loss back in a month.

I'm not twisted or angry.
I'm not even telling people to sell lol, buy more if you want, but end result isn't going to change.

I wouldn't even buy this at 0.1p.

hasiba,

"The market seems to expect an alternative for the restructuring plans ,to keep the SP at more 8 times of the proposed dilution value....
And please don’t tell me the market makers are balancing their books or playing trick for their advantage....
The current SP is simply agreed by the stockjobbers is the real market value..meaning they have not taken the views of no other alternatives available...."

Lol come on.. use your braincell.

Here's some maths for you:
1992m shares x 0.8p = £15m
new "proposed" 37850m shares x 0.1p = £35.35m ($50m)

Total 39840m shares (for when the shares come into the market, i.e. dilution happens) = 0.126p/share

Still don't understand?
This bbc link for 8 year olds might help you: https://www.bbc.co.uk/bitesize/topics/zm49q6f

adoubleuk,

The evidence is unaudited accounts for FY20.

Which will be provided to the market as audited and signed off following the restructure.
The presentation provides enough info for you to comprehend the situation HUR is in..

Unfortunately, there are no alternatives. I suppose several things have worked against HUR - including having to assign cash as restricted for decommissioning purposes.

I don't think that the company is selling the shareholders down the hill. Just that it's got to the stage where there is no other alternative, other than some big investor stepping up and overpaying for the company.

senseman,

People should really be writing to bondholders and ask them to accept the deal for shareholders sake..
Maybe you should do it rather than flaming posters here?
Being salty and flaming here isn't going to do anything regarding the insolvency of this company lol.
Your loss, not mine.

5% is better than 0%.

adoubleuk,

Complaining about the situation isn't going to help.
Can you provide an alternative?

The alternative for HUR (other than this restructure) would have been an RNS along the lines of:
"As the company has failed to secure funding for a FWP, the company will now produce until 4th June 2022, and then wind down operations.
The company cannot guarantee to pay back the convertible bond and therefore will declare bankruptcy following decomissioning of the assets.
The company cannot guarantee that there will be any value left for shareholders following liquidation and therefore we will be seeking to delist from the AIM market early next year."

What would have been the SP impact I wonder.
From 5% ownership, to 0% (in 12 months time).

Tarmak,

Cool spreadsheet. Though very optimistic in production for 2021, imo.

As per guidance and with estimates, i'd give the below (on an annual production basis):
Kraken = c. 23k bopd
Magnus = c. 15k bopd
Scolty etc = c. 4.75 - 5k bopd
Malaysia = c. 5.5k bopd
GE = c. 2.5k bopd (based on Q4 alone)

To end of April, I have production estimated at c. 45.5-46k bopd

adoubleuk,

"However, wading back through the literature, I see no mention of the BoD stating explicitly that they intend to decomission the field next year. Instead, it's an implicit threat. Sabre-rattling."
In black and white (on the wind down case) see below.
"Wind-down Summary
- Assets are fully decommissioned and decommissioning liabilities discharged"

"Where, anywhere, is it stated that 'operations will cease in 12 months' ? Please reference document and page."
Just to clarify, the cease of production depends on the different cases provided. If there is no bondholder support (for 95% of the company), the date is 4th June 2022.

Reference document: The Refinancing presentation.
https://www.hurricaneenergy.com/investors/presentations

I'd suggest viewing all the slides..
But for reference of cease of production - Slide 18.

Hi Bransonbull,

Nope! I'd rather miss out on any rise than invest when the situation is dire.
Yes, the results for 2020 was very good considering COVID + SFO + CAPEX deferral due to low oil price etc.

Q1 2021 was good too, Petrofac secured some good orders to keep backlog alive.
However Q2 is lacking. No significant order coverage this quarter thus far. The backlog is diminishing.

I'll buy back in when I feel like there is value or when I see a recovery here.

Good luck to you.

Hasiba,

Doesn't matter because it's GAME OVER.

You keep holding thinking you'll get a second life.

"Also any eventual decommissioning will still be 'operations'."

Fine, this is just being technical... not practical..
But doesn't change the fact that even during "operations" beyond production (decommissioning), HUR will not be producing cash, but instead burning cash.

adoubleuk,

"Please quote source."
12 months and 3 weeks*.
The FPSO term expires then.
From the presentation:
"Hurricane executes planned wind-down of operations starting in mid-22
- GLA continues production until end of initial hire period on 4-June-22
- Lancaster field produces an average of approximately c.9,500bpd to the beginning of June-22. As production is based on a single active well (P6), well failure is a significant operational risk for the business
- FPSO lease not extended in June-21, thus terminating at the beginning of June-22"

"Also any eventual decommissioning will still be 'operations'."
Not quite in this case as further cash is being allocated for the decomissioning as restricted.

"In April 2021, the Offshore Petroleum Regulator for Environment & Decommissioning (“OPRED”) formally requested that the Company increase the amount of decommissioning security for the Lancaster field by £11.2 million ($15.7 million), in order for the security to be in place on a pre-tax basis. Accordingly, the Company expects to classify this amount as restricted cash in May 2021, which will result in a total of £28.0 million ($39.2 million) of cash restricted for decommissioning security"

As for other decom expenses (such as GWA/Lincoln), sure that's operations CAPEX/Decom. But no denying that the FCF generation during this period would be subdued.

adoubleuk,

"The point being that there have been continuous tanker-loads of crude oil being offloaded from the Lancaster FPSO, bought and then sold to market at a profit via BP for a considerable time now, and the company is in cash-terms solvent. Selling the shareholders down the line at huge loss to them, just to satisfy a potential (hypothetical) loss to bondholders (creditors) who have already been getting been paid interest on their own investment would be an almost unprecidented thing to do."

Okay sure, the EPS is currently economical. I think that's what you're saying here.

But bond is due in 14 months, and operations will cease in 12 months.

So how or where do you suppose HUR will find the additional required cash to pay the bondholders if you believe that the company is "cash terms solvent"?

Free cash as at April: $127m
CAPEX, bond interest, decom etc. costs: $86m

Cash left currently to pay bondholders: $41m

"The fact remains. There is an FPSO out there, WoS, delivering oil at around 10,000 bopd via tanker offloads. More than Premier's Solan has ever managed."
Do you believe that the ongoing operations, producing 10k barrels for the next 12 months will produce $189m FREE cash flow?
Sure if Brent was $90/barrel.
Otherwise, just delusion.

"c. $47m worth of commitments of CAPEX/Decom etc."
*$86m including bond interest and wind down costs

"they are saying that they expect to produce nothing in the next 12 months which can only mean they are taking the extremely pessimistic view that production will drop of rapidly."

No, they just have commitments.
c. $47m worth of commitments of CAPEX/Decom etc.

"You elected to lose your money earlier"

Elected to lose, and regained that loss 7+ months ago.
But yeah, you keep buying since you've not "lost" yet, lmao.

RetiredFella,

I have nothing against you and hope it does work out for you.
Although if I was in your position, selling at a spike would be the best bet.

There is huge market volatility to come, with inflation fears, covid opening etc.
It is still possible to recover your losses elsewhere within a year.

Though it'll be difficult to regain on this stock. Hopefully you have diversified.

Good luck to you.

People having a laugh?

Still within trend, but if this goes down further with market volatility, i'll be looking to top up here tomorrow.

CaptainSwag,

Idk about the 2C resources, as this is based on OWC.

But the 2P reserves is more convincing. In fact, I think even the new CPR is optimistic on the 2P reserves. But then again.. those are figures at 31st December 2021.
Current 2P reserves are more around 5m barrels.

But again, even 5m barrels is optimistic from an economic limit point of view.
I think maybe 2-3m of the 5m barrels could be recovered at $70/barrel.