Last checked at 23 Jun 2017 07:00
23 June 2017
CRYSTAL AMBER FUND LIMITED
("Crystal Amber" or the "Fund")
Statement re. share price
Crystal Amber notes the recent decline in its share price. The Directors believe it primarily reflects the decline in the share price of its largest investment, Hurricane Energy plc ("Hurricane"). The Fund currently holds 150,000,000 shares in Hurricane at an average cost of 23p a share. In addition, the Fund holds warrants over 23.3 million shares exercisable at 20p a share. The Fund has previously realised profits on Hurricane of £15.7 million.
The Fund attributes Hurricane's share price decline principally to the poor handling of its warrant issue announced on 12 May 2017 and comments at its AGM on 7 June 2017, which referred to the near term focus being on funding and delivering the Early Production System.
As Hurricane's largest independent shareholder owning 12.2% of the issued share capital, Crystal Amber is supportive of monetising Hurricane's assets, which are valued by Crystal Amber's external consultants who have been its consultants for the last two years, on a NPV10 basis and assuming a $55/bbl flat nominal oil price and that contingent resources "trade" at a discount to reserves by 50%, at 219p a share. The Fund also notes comments at the AGM regarding the reopening of Hurricane's data room to a limited number of oil companies that have the requisite development credentials to take the Rona Ridge project to full field development. The Fund also believes in the strategic value of Hurricane's asset base.
For further enquiries please contact:
Crystal Amber Fund Limited
William Collins (Chairman)
Tel: 01481 716 000
www.crystalamber.com
Allenby Capital Limited - Nominated Adviser
David Worlidge/James Thomas
Tel: 020 3328 5656
Winterflood Investment Trusts - Broker
Joe Winkley/Neil Langford
Tel: 020 3100 0160
Crystal Amber Advisers (UK) LLP - Investment Adviser
Richard Bernstein
Tel: 020 7478 9080