I always wanted to see Hurricane do well, but today’s update with a decision to close in 50% of the company’s operational output is Sparks terrible news for the company. With revised output now unknown (likely sub 9kbo/d) all the companies revenues now sit with 1 well. Capital now needs to be spent to assess the reservoir. I’ve seen this so many times, when you push and push for greater well performance it’s only a matter of time before you either damage the reservoir or impact your wells stability and performance. A positive though, assessment and forward action of issues surrounding the well with water cut can now be addressed.
Reservoir conditions can change in a heart beat. Projected boed is just that, a projection on expected performance only. To take that as a guaranteed expectation will set you up for failure. I’ve known wells with 1 meter fractures with expected 40k dry oil output, give 40% water cut in a matter of days.
Moral is, output should only be taken as guidance and not in fact guaranteed.
PMO’s acquisition of the Andrew and shearwater helped to drive positive sentiment there. I would disagree with all other Oiler’s have performed well. Those that have, have been performance driven. BP for example has performed terribly 2019 Q3/4 and thats been reflected in the SP. Good to hear the updates on well performance.
Unfortunately it’s not a good time to be apart of oil. The market wants a cleaner, greener path to energy and unfortunately for HUR, it’s eggs are all presently in 1 basket. Don’t get me wrong, as a company it’s Brought 2 wells to fruition and is now revenue generating. It’s last couple of dusters will have dented confidence and market sentiment. But I do see value here, but is does not come without its risks. From a reservoir perspective, have we seen any drop in flow rates? Are the wells still giving dry oil or have we seen any water cut? ADUK is around on this board? ThanksTops
Jimzi a 9% drop on what some see as a positive RNS is the market speaking. The market expected more from the figures presented and the reason for the disappointment is PF once again over egging the pudding.
Who cares what it was marked up at h&n, the fact of the matter is the update was viewed badly by the market and is reflected in today’s SP. That is not my opinion sir, that is fact. The market is not interested in PF’s hopes and dreams of what might be, only what is.
Until the contracts are signed and exchanged, terms and costs are known, nothing is guaranteed. Without that guarantee, the plug can still be pulled. So please take no assumptions and try to pass “when the contract lands” we’ve been in similar situations before.
What’s not to like max? I’ll tell you what’s not to like. 3 years of over promising, under delivering and a laboured SP. for those of you who believe today’s RNS is transformational think again. Ask yourselves why the market sees things in a very different way. Nothing is secured and therefore can terminate at any given stage. That is after all the services game. Without those binding contracts, there is no security. Anybody can blow smoke and mirrors with the promise of this and the likelihood of that but what PF is judged on is his ability to land contracts that lock in positive cash flow and release WSG potential.
And Tosh, FYI I’ve been long on this share for almost 3 years and have seen nothing to suggest that PF can deliver any more then wishful thoughts and empty promises.
Let’s see who turns out right and let the SP do it’s thing.
Seen it before and will see it again. PF raises expectations and drops an ambiguous flat RNS. Without anything propping up the SP (and please don’t say TEMA) more likely chance of seeing nominal before 20p, market seems to agree.
Could not agree more NatDan, Ghana made max couple hundred thousand, how much of that is profit? Without that contract I see this only as pocket money keeping the business ticking over. PF’s winter surprises are becoming more transparent every year and the market sees right through him. He offers hope to LTH with his over promise attitude when in reality he under performs as the CEO.
After reading through yesterday’s RNS again this morning it’s clear to see the impacts of the lingering SFO case which is hampering petrofacs ability to win major contracts, more so in affected regions like Iraq. None the less, without any clear perspective until at the earliest back end of January, don’t be surprised should this drift a little lower. Unfortunately the CITY boys know yesterday’s figures were not pretty.
Bunker down, Tin hats on, let’s hope for a positive outcome of the court case 1st quarter.
I’m not asking whether or not they care, that is blatantly obvious. What I’m asking is can and more importantly will petrofac file for damages in the event of SFO closure as the cloud has hampered its ability to do business.
PF hopes for a lot, and always has, he’s a pipe dreamer that consistently under performs. Yes TEMA might be making positive cash flows at this moment in time but without that signed contract, the rug can be pulled so to speak. PF has such a bad track record that it’s no wonder investors are cautious about Westminster.