Member Info for Slift

Yo team,

We still holding for water?

How about 100% chance of dilution?

P&A OGA deadline in July 2021.

Paul Lloyd B Jr is contracted to Chrysaor until Sept 21.

Status: Awaiting Dilution.

What are you on about? We almost had a similar figure, idiot.

"HUR assets alone are currently worth significantly more than a 14-16p valuation as absolute bare minimum here"

Did you take this value straight out of your backside?

7m 2P reserves: valued at $70m
1.7m 3P reserves: valued at $8m
58m + 45m 2C resources: valued at c. $159m

Based on that, HUR's assets are currently valued at $237m, not accounting for additional resources from Halifax/Warwick/Sandstones.

Cash in hand approx. $115m.

Bond: $230m
Market Cap: £70m ($98m)

Anyways, that's the past!!!
Where's the funding confirmation?!

DireEmblem,
Not quite. The $40 floor hedges would have probably had a ceiling at $55-60/barrel.
The ones HUR got had no ceiling.

"During June 2020, the Company hedged a portion of its forecast production for the second half of 2020. A total of 1.8 MMbbls, or c.10,000 bopd, has been hedged through the purchase of put options with an average strike price of $35/bbl. The average strike price of $35/bbl represents a floor for the hedged volumes of 1.8 MMbbls, with the Company retaining any upside in oil prices above this level. The cost of acquiring the put options was $3.4 million."

$3.4m spent on hedges is equivalent to 0.2p share price.

CaptainSwag,

They hedged in the summer... not at the start of the pandemic.
If they had hedged for H2/20 at the start of pandemic, I think they would have got better rates due to forward curve being significantly higher.

They hedged at the end of the downturn (and on the rebound), bad timing.
Most other oil companies had got $40ish hedges around the same time btw. $5 isn't much of a difference, but at least at $40, hedges would have been used somewhat and wouldn't have been all a wasted effort and money.

Don't tell me what to do old man!!

"Sure easy to quote forward curves with most bank analyst got that completely wrong you included"
Well.. forward curves have nothing to do with bank analysts. Idiot.

And FYI Dickbatty,
Brent never hit minus and it never well due to cash settlement.

It wasn't a sensible hedge at all.
Brent hit all time low of c. $18/barrel in April.
HUR bought $35/barrel hedges when Brent was c. $40/barrel with forward curve @ $38/barrel.

I don't see any other management of other oil companies being this irresponsible.

DiveCentre,

Yes, provides security. However, it seems like the HUR board are incompetent in the industry.
At the time they had secured the hedge for $35/barrel, the forward curve was $38/barrel.

So if you ask me, they had bought the worst hedges, at the worst time. Not a $ gained from hedge. Money wasted at crucial time for the company.
But it's okay, because it's shareholders' money right?

Their hedges were useless and waste of money!!!

Lol, it's been 8 months since the board had changed (and Dr Trice sacked).

Yet the new "board are still investigating options etc." whilst the company's shareholders suffer.

antharry,

I have a holding here.
I'm AGAINST the sale of EG assets. I'm FOR the sale of Gabon assets.

I don't see any benefits whatsoever for the price we're getting for EG assets at current oil price.

Here's the recent ENQ acquisition in UKNS @ $325m - for 18m 2P and 5m 2C:
https://www.lse.co.uk/rns/ENQ/agreement-to-acquire-ukns-asset-0z584a3913qq64s.html

Yet we're only getting $89m (and POTENTIALLY $16m in contingents) for EG assets.

I'm done arguing here and will wait for the circular, whatever happens happens.
But my views on Tullow's medium and long term potential will change depending on the outcome of this sale.

Idiot.

CEO's stategy: https://edge.media-server.com/mmc/p/nwxjzxt7
15:50 onwards.

No, i'm against the sale of EG assets for $89m.
Provides virtually no benefits to Tullow at $57+/barrel.

Slip, yes, that's about right.
$10m and now they're rehiring a rig.

I'd image current rig to cost around $17-18m for the stated period by Petrofac.

Tony,

The Opex cost for EG is approx. $17/barrel in 2020, dropping down to $15/barrel for 2022+.

Taxes are offset with previous years losses. In the event that they are not, payback INCLUDING taxes for these assets is 21 months at current oil price, and approx 25-26 months at $57/barrel forward curve.

Why would 2c resources be $0.1m/m resource in Africa when we sold Uganda for "cheap" at c. $1.2m/m barrel?

14m 2P = $140m by your NA value
8m 3P = $40m by your NA value
26m 2C = $31m (at $1.2/barrel)
= $211m

If you're including decomm costs, you should also include FCF in the calculation.

In the current market, $150-180m consideration on completion is good value for EG assets (PLUS the contingent payments).