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Hurricane Energy (HUR)

Tinderboy
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Re: Hurricane Energy (HUR)

#387143

Postby Tinderboy » February 16th, 2021, 8:43 am

Wont go near HUR anymore, a poison chalice! 25% rise may entice interest, but my concern would be an announcement for a single drill-rework of (7), then a share dilution ............

ReallyVeryFoolish
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Re: Hurricane Energy (HUR)

#387146

Postby ReallyVeryFoolish » February 16th, 2021, 9:05 am

Tinderboy wrote:Wont go near HUR anymore, a poison chalice! 25% rise may entice interest, but my concern would be an announcement for a single drill-rework of (7), then a share dilution ............

It's approximately doubled in a couple of weeks. But 2x nothing is still nothing. Each time this happened the last few months, it's followed by a bad RNS that drops the stock back down again. Why? I don't know, I am not clever/savvy enough to understand.

RVF

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Re: Hurricane Energy (HUR)

#387275

Postby Tinderboy » February 16th, 2021, 7:40 pm

RVF, your correct, thats the reason im out, repeatedly let down at every opportunity, thats why i dont believe this is any different, they may get the drill in place there will be a cost to the investors again, absolutely no doubt. They might try the 88E old trick of refinancing just before the results of the drill.

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Re: Hurricane Energy (HUR)

#389839

Postby Tinderboy » February 25th, 2021, 8:42 am

I really fear the worst case scenario here, it looks more and more likely that it will be the June 22 date for putting the Toys away. No news! No Updates! No Rig! No Hope!

ReallyVeryFoolish
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Re: Hurricane Energy (HUR)

#389857

Postby ReallyVeryFoolish » February 25th, 2021, 9:58 am

Tinderboy wrote:I really fear the worst case scenario here, it looks more and more likely that it will be the June 22 date for putting the Toys away. No news! No Updates! No Rig! No Hope!

Yep. I think there's no way back from here. I believe HUR have no way to drill anything like the mooted side track or water reinjection well at Lancaster this year now. It's too late to book anything. The money recently ring fenced for decommissioning costs is probably going to be spent. It looks to me like a very sad end to what looked for a while to be a new lease of life for UKCS hydrocarbon production. What a shame.

RVF

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Re: Hurricane Energy (HUR)

#391352

Postby Tinderboy » March 2nd, 2021, 7:19 am

What a sad end to what was a very promising project, clearly the current BOD are looking at self preservation and their next appointments, it beggars belief that they have taken months to decide to actually do nothing, last person leaving the building put the lights out...

FabianBjornseth
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Re: Hurricane Energy (HUR)

#391357

Postby FabianBjornseth » March 2nd, 2021, 7:50 am

Tinderboy wrote:What a sad end to what was a very promising project, clearly the current BOD are looking at self preservation and their next appointments, it beggars belief that they have taken months to decide to actually do nothing, last person leaving the building put the lights out...


Doing nothing was always likely to come out as the best option with the revised subsurface understanding. Those with interests and the capital required to fund additional activity will have seen the proposal as "throwing good money after bad". A miraculous change in well performance trends or a spike in brent price may throw a lifeline, but the company decided not to include any production update with the RNS, which they probably would have if things were looking great on that side.

dspp
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Re: Hurricane Energy (HUR)

#391397

Postby dspp » March 2nd, 2021, 9:52 am

For the benefit of all, RNS now out at
https://ir.design-portfolio.co.uk/viewe ... P7,TGT4W,1
My reading is HUR are telling smallbeer equity "you are being warned, get out now whilst you still have an exit"
regards, dspp

==
RNS Number : 7754Q Hurricane Energy PLC 02 March 2021

Update on Stakeholder Engagement and Lancaster Activity Programme

Hurricane Energy plc, the UK based oil and gas company, provides an update on the previously announced stakeholder engagement process and the timing of further activity on the Lancaster field.

Stakeholder Engagement1

The Company has previously announced that it is engaging with its stakeholders on a proposed development plan and associated funding for the Lancaster field. The Company confirms that these stakeholders include an ad hoc group of convertible noteholders. Discussions on the Company's forward work programme, strategy, financing and balance sheet recapitalisation are ongoing.

Lancaster Activity Update

On 18 December 2020, Hurricane outlined contemplated next steps in the Lancaster development programme, which included a second production well in 2021 by side-tracking from the existing 205/21a-7z well into the central area of the field.

This proposed side-track is more complex in nature than previous wells on Lancaster due to the incorporation of an intelligent completion and the challenges of delivering the well trajectory from the side-track location. As a result, the Company has concluded that it will not be possible to drill this well during the 2021 summer weather window without unacceptable operational and cost risk.

While no firm decisions have been made, the Company is now considering various options including:

i. drilling the side-track in 2022 following further planning activity during 2021;

ii. drilling the side-track together with the previously contemplated water injection well as a combined programme in 2022; or

iii. drilling the side-track in 2022 and the water injection well in 2023.

All options for potential further development activity are subject to factors which are or may be outside the Company's control which include field performance, prevailing oil prices and support from relevant stakeholders and counterparties.

ReallyVeryFoolish
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Re: Hurricane Energy (HUR)

#391401

Postby ReallyVeryFoolish » March 2nd, 2021, 10:00 am

That's one crazy update because there is no update at all in the RNS that I can see. We already knew that the company had failed to book a drilling crew for this year. I can't at this point see the FPSO being economic at around 10k barrels a day even at $65 Brent. If stakeholders had sanctioned a 2022 drilling campaign, the RNS would have said so. It's been many, many months since there was anything positive to say. There has been no positive news at all from the new management. The absence of anything positive now just reinforces my current view that at the first contract break with Bluewater, the break clause will be triggered and the sub sea kit decommissioned. How sad if it comes to that.

RVF

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Re: Hurricane Energy (HUR)

#391412

Postby Tinderboy » March 2nd, 2021, 10:16 am

The first opportunity is June 21, 12 months notice will be June 22, then 3 months to disconnect and put the toys away, in between the core crew will abandon the sinking ship.......

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Re: Hurricane Energy (HUR)

#391496

Postby mearnsfool » March 2nd, 2021, 12:39 pm

It is so sad a good number of the core crew from the vessel put a lot of their pension funds from their SIPPs in Hurricane. At the time I thought not a good idea!

Just working people who believed the Hurrican Fairy Story.

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Re: Hurricane Energy (HUR)

#392072

Postby Proselenes » March 4th, 2021, 7:12 am

Crystal Amber half year report............


https://www.londonstockexchange.com/new ... t/14887002

Hurricane Energy plc ("Hurricane")

The Fund has been a shareholder in Hurricane since March 2013. In April 2016, Hurricane asked the Fund to invest GBP7 million to enable it to commence its workstream. Six months later, when Hurricane raised additional capital, the Fund invested GBP12.6 million at 34 pence per share. In the mishandled fundraise of June 2017, the Fund invested a further $10 million.

Aside from Kerogen Capital, which until recently was represented on Hurricane's board, the Fund is Hurricane's largest shareholder and the only disclosable institutional shareholder. Following last year's oil price collapse, the Fund added to its shareholding and currently owns more than 11% of its share capital.

The Fund regards itself as a long-term part owner of Hurricane. In 2015, the Fund introduced Hurricane to its highly regarded technical consultants who have engaged constructively with the company on several occasions. The Fund believes that since 2013, it has done everything possible to support the business.

Over the last six months, the Fund has experienced a dramatic deterioration in the way that Hurricane is engaging with the Fund. This is consistent with what the Fund considers to be inadequate, confusing and poor messaging to market participants.

Within its regulatory news service announcement of 11 September 2020, Hurricane stated that it would be "engaging with all our key stakeholders regarding our formal work programme and financial arrangements and updating the market". On 8 October 2020, Hurricane stated that "as disclosed in the interim results announcement, the Company intends to engage with all key stakeholders regarding its forward work programme, capital allocation and financing arrangements". During September and October 2020, the Fund suggested, following discussions with other Hurricane shareholders, that it should allocate a portion of its cash to buy in some of the Hurricane loan notes at below 50% of par value. The Chairman of Hurricane had previously told the Fund that he regarded such a purchase as "a commercial no brainer". No update on bond purchases or capital allocation has been provided to the Fund or the market.

On 18 December 2020, the Chief Executive of Hurricane told the Fund that he would ask Hurricane's lawyers if, given that there had been no covenant breaches and repayment was more than 18 months away, bond holder consent would be required before the company could enter into financial commitments on its forward workstream and capital allocation. He said that he would revert back to the Fund. The Fund followed up in writing on this point on 8, 13, 26, 27 and 30 January 2021. On 31 January 2021, the Chief Executive responded to say that they had been advised to "be engaging with the bond holders". There was no answer to the question as to whether consent would be required.

On 8 January 2021, the Fund shared its updated technical report with Hurricane. This stated why the Fund and its consultants believe that the board of Hurricane does not seem to be focusing on the upside potential of the fractured basement play within Hurricane's licences. The Fund sought an explanation as to why Hurricane was not keen to tie back the existing Lincoln Crestal well which was reported to have tested at a sustained commercial rate. Production from Lincoln could significantly increase overall output with minimal pressure drawdown at Lancaster. The Fund believes that the Lancaster basement play may contain resources greatly in excess of the pool currently being developed by the Lancaster EPS.

At the date of this report, the Fund has not been provided with any explanation. On 14 February 2021, the Fund wrote to Hurricane requesting a call between Hurricane and its technical consultants. Despite follow up by the Fund, Hurricane has failed to arrange such a call.

On 14 February 2021, the Fund wrote to the Chief Executive of Hurricane requesting that Crystal Amber nominates a director to the board of Hurricane. Other than responding to note that the request had been shared with the board of Hurricane, the Fund has received no response to this request.

On 2 March 2021, Hurricane stated that within its stakeholder engagement, "discussions on the Company's formal work programme, strategy, financing and balance sheet recapitalisation are ongoing". As described above, the Fund has had no such discussions with Hurricane,

The Fund notes that the seven board members of Hurricane own shares with a total value of GBP60,000.

The Fund is no longer prepared to be excluded from participating in the evaluation of impending critical decisions by those who have virtually no skin in the game. The Fund always prefers to engage privately and constructively with its investee companies. However, the Fund has found the board of Hurricane to be both indecisive and obstructive. Therefore, it now intends to take appropriate action in order to maximise Hurricane's potential.

A trading update in January 2021 highlighted how cash generation has recently improved as a result of the recovery in the oil price, with the company generating $19 million in the month of December 2020 alone, taking cash to $106 million. The Fund notes that the price of Brent crude has recently continued its strong recovery, from $38 per barrel in October 2020 to more than $60 a barrel. The Fund believes that in 2021, this increase alone should add more than $100 million in cash to Hurricane. It should also significantly increase the value of Hurricane's other, hitherto, untapped resources if this level is maintained.

ReallyVeryFoolish
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Re: Hurricane Energy (HUR)

#392112

Postby ReallyVeryFoolish » March 4th, 2021, 9:19 am

mearnsfool wrote:It is so sad a good number of the core crew from the vessel put a lot of their pension funds from their SIPPs in Hurricane. At the time I thought not a good idea!

Just working people who believed the Hurrican Fairy Story.

The upside to that is that the vessel crew would know exactly what was happening on board. I think the majority of them would have quietly dumped their share holdings when it first became apparent that what Dr Trice was saying was actually not really true. The guys are not stupid, not by any means.

RVF

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Re: Hurricane Energy (HUR)

#392220

Postby dspp » March 4th, 2021, 12:33 pm

Proselenes wrote:Crystal Amber half year report............


https://www.londonstockexchange.com/new ... t/14887002

Hurricane Energy plc ("Hurricane")

The Fund has been a shareholder in Hurricane since March 2013. In April 2016, Hurricane asked the Fund to invest GBP7 million to enable it to commence its workstream. Six months later, when Hurricane raised additional capital, the Fund invested GBP12.6 million at 34 pence per share. In the mishandled fundraise of June 2017, the Fund invested a further $10 million.

Aside from Kerogen Capital, which until recently was represented on Hurricane's board, the Fund is Hurricane's largest shareholder and the only disclosable institutional shareholder. Following last year's oil price collapse, the Fund added to its shareholding and currently owns more than 11% of its share capital..........................

The Fund notes that the seven board members of Hurricane own shares with a total value of GBP60,000.

The Fund is no longer prepared to be excluded from participating in the evaluation of impending critical decisions by those who have virtually no skin in the game. The Fund always prefers to engage privately and constructively with its investee companies. However, the Fund has found the board of Hurricane to be both indecisive and obstructive. Therefore, it now intends to take appropriate action in order to maximise Hurricane's potential.

A trading update in January 2021 highlighted how cash generation has recently improved as a result of the recovery in the oil price, with the company generating $19 million in the month of December 2020 alone, taking cash to $106 million. The Fund notes that the price of Brent crude has recently continued its strong recovery, from $38 per barrel in October 2020 to more than $60 a barrel. The Fund believes that in 2021, this increase alone should add more than $100 million in cash to Hurricane. It should also significantly increase the value of Hurricane's other, hitherto, untapped resources if this level is maintained.


Interesting.

Well if CA wish to put forwards a buy-out offer then they know what to do.

In the meantime HUR have been quite right to give them no more information than any other shareholder.

regards, dspp

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Re: Hurricane Energy (HUR)

#393453

Postby Tinderboy » March 7th, 2021, 8:11 pm

Think the parties over, all the BOD need to do is gradually release the Kraken and open up the taps releasing pressure in the only good well, the Parrot is Dead!

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Re: Hurricane Energy (HUR)

#398309

Postby Tinderboy » March 23rd, 2021, 1:40 pm

Preparing for the head shot as they say on The Wire......

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Re: Hurricane Energy (HUR)

#402184

Postby wanderer101 » April 7th, 2021, 8:34 am

CPR summary and stakeholder engagement update out today:
https://www.investegate.co.uk/hurricane ... 00115936U/

The BoD can't really be making it any clearer:

The Company continues to engage with an ad hoc group of its convertible noteholders over the Company's forward work programme, strategy, financing and balance sheet recapitalisation. It should be noted that there is a risk of significant dilution to existing shareholders from a possible restructuring and/or partial equitisation of the convertible bonds and of potentially limited or no value being returned to shareholders.



If no agreement can be reached with the Company's stakeholders on additional development activity at Lancaster, the field could continue to produce from the P6 well before reaching its economic limit, the timing of which would depend on oil prices, actual production levels delivered and the level of cost savings achievable. The field may then be decommissioned, with potentially limited or no value returned to shareholders.

Disc: former holder, took a loss, relieved to have taken the hit

ReallyVeryFoolish
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Re: Hurricane Energy (HUR)

#402194

Postby ReallyVeryFoolish » April 7th, 2021, 9:07 am

wanderer101 wrote:CPR summary and stakeholder engagement update out today:
https://www.investegate.co.uk/hurricane ... 00115936U/

The BoD can't really be making it any clearer:

The Company continues to engage with an ad hoc group of its convertible noteholders over the Company's forward work programme, strategy, financing and balance sheet recapitalisation. It should be noted that there is a risk of significant dilution to existing shareholders from a possible restructuring and/or partial equitisation of the convertible bonds and of potentially limited or no value being returned to shareholders.


If no agreement can be reached with the Company's stakeholders on additional development activity at Lancaster, the field could continue to produce from the P6 well before reaching its economic limit, the timing of which would depend on oil prices, actual production levels delivered and the level of cost savings achievable. The field may then be decommissioned, with potentially limited or no value returned to shareholders.

Disc: former holder, took a loss, relieved to have taken the hit

There you go. No need to even read between the lines. How sad.

RVF

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Re: Hurricane Energy (HUR)

#402200

Postby Tinderboy » April 7th, 2021, 9:28 am

Looks as if they are handing the responsibility to the UK-OGA, a bit like phoning your mate and offering him £25 to take your old car to the scrappy...

dealtn
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Re: Hurricane Energy (HUR)

#402239

Postby dealtn » April 7th, 2021, 11:06 am

wanderer101 wrote:CPR summary and stakeholder engagement update out today:
https://www.investegate.co.uk/hurricane ... 00115936U/

The BoD can't really be making it any clearer:

The Company continues to engage with an ad hoc group of its convertible noteholders over the Company's forward work programme, strategy, financing and balance sheet recapitalisation. It should be noted that there is a risk of significant dilution to existing shareholders from a possible restructuring and/or partial equitisation of the convertible bonds and of potentially limited or no value being returned to shareholders.



If no agreement can be reached with the Company's stakeholders on additional development activity at Lancaster, the field could continue to produce from the P6 well before reaching its economic limit, the timing of which would depend on oil prices, actual production levels delivered and the level of cost savings achievable. The field may then be decommissioned, with potentially limited or no value returned to shareholders.

Disc: former holder, took a loss, relieved to have taken the hit


It might be true they can't make it any clearer, but it's still not clear what the outcome might be.

Potentially limited could be 5p a share, I think we can work out what no value means.

At around 3p to buy there could be either profits or losses made yet.


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