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Hurricane Energy (HUR)

Tinderboy
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Re: Hurricane Energy (HUR)

#410458

Postby Tinderboy » May 9th, 2021, 8:59 am

Looks as if the bond holders will attempt to squeeze every last drop of oil/dollars out of the Lancaster field, its doubtful if they will invest good money after bad on a new producer that may not work or be economically viable. Something they have overlooked is operations, do they really think people will hang around to ensure the Bond holders pockets are lined, lets not forget many employees invested in this dog and the only winners are the Bond holders......

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Re: Hurricane Energy (HUR)

#410481

Postby Tinderboy » May 9th, 2021, 10:26 am

I would imagine the AM has a core crew of regulars, I dont believe even in these times they allow any old Honkytonk to pull up at the Heliport, tie up their Hos' and spurs and are then let loose on a production platform.....

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Re: Hurricane Energy (HUR)

#410519

Postby Tinderboy » May 9th, 2021, 12:23 pm

According to google HUR energy have 55 employees,down from 75 last year, what’s that over 5m per year in wages?

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Re: Hurricane Energy (HUR)

#410677

Postby Tinderboy » May 10th, 2021, 8:23 am

Still sticking with the June 22 finish, all the latest charts and summaries are just firewood for the inevitable.

thehaggistrap
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Re: Hurricane Energy (HUR)

#410790

Postby thehaggistrap » May 10th, 2021, 3:10 pm

Lemon Fools,

I have composed a 10 page document & time-line for legal firm who are seriously considering class action against Hurricane Energy.
Proposed case would be on a no-win / no-fee basis and based on the 2017 CPR.

I have no idea if this will get off the ground! Well aware it is an uphill battle. Legal firm are keen enough to allocate a partners time to this case (at their expense) and have been investigating the merits independently.

I plan to submit time line by the week end.
Any help to review this before submission would be much appreciated.
Please send a PM and I can email you a copy for review.

Thanks
HT.

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Re: Hurricane Energy (HUR)

#410799

Postby mearnsfool » May 10th, 2021, 3:31 pm

As I have stated on this forum before, the majority of the Bluewater production and operating people on the boat and in the office in Portlethen or working from home supporting the boat are staff not contractors or people from some other company.

Yes, these people are highly skilled and have various tickets in maintaining and operating the facilities and without such people, with these specific tickets on board the boat. The production would have to shut down. There is usually a spreadsheet on board that states the minimum requirements for each skill base and it can be difficult to keep to these levels populated on board the boat.

Aberdeen is still in the staff reduction mode and not many jobs are about. Therefore, not a great time to leave a job that has say 6 months life left as many jobs advertised in the area can tend only to be for three or four 3 week trips at most.

Unless there is an FPSO starting up or coming out of storage, I think it will be possible to retain the core crew at the moment. As always never say never.

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Re: Hurricane Energy (HUR)

#411814

Postby Tinderboy » May 14th, 2021, 7:11 am

BOD are rushing this court hearing through, yet they sat on their hands for nearly the best part of a year, what are they afraid of?

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Re: Hurricane Energy (HUR)

#413133

Postby Tinderboy » May 19th, 2021, 7:31 am

Tinderboy wrote:

A scenario would be for CA to fund the drills, the SP would go to say 5p, CA could then sell at 5p, I think there is a bigger picture here for sure....Will find out soon enough...

I seriously doubt HUR could raise the money themselves, for sure. Hence the doom tone in the recent RNSs. As in, "you can't say we didn't warn you".

RVF

Is this happening now?

thehaggistrap
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Re: Hurricane Energy (HUR)

#413151

Postby thehaggistrap » May 19th, 2021, 8:58 am

Quite the statement from Crystal Amber.
Essential reading!

http://newsfile.refinitiv.com/getnewsfi ... theme=true

My feeling is that the higher OWC means things have gone badly wrong. However there is still enough value (120 million cash in bank, 11k bopd, tax write downs on expenditure, acreage) that its worth something to someone. The current soap opera is simply the bond holders, whom I believe to be Kerogen <tbc>, fighting the share holders over the remains.

One thing is for sure : share holders were shafted by Hurricane Energy and the 2017 CPR.

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Re: Hurricane Energy (HUR)

#413166

Postby Tinderboy » May 19th, 2021, 9:37 am

Dont think there is an appetite to re-invest in future drills, thats the problem.
Its ok CA banging the drum, but to what end?

Dont think the SP will hold up, in fact more good folk could lose further SIPP's today if they are not very careful...

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Re: Hurricane Energy (HUR)

#413301

Postby Tinderboy » May 19th, 2021, 6:46 pm

Struggling to see who will invest, take big gamble with HUR in this climate.
Unless its a stone waller with low carbon attachments like KISTOS for example.
This is certainly not a stone waller by any means, OK, they have cut short FFD, but the drills have not been conclusive in any way, most have been disappointing.

I do think this is the death rattle we are witnessing.........

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Re: Hurricane Energy (HUR)

#413404

Postby thehaggistrap » May 20th, 2021, 8:04 am

^ I think that its about it...
There might be value in Hurricane - however it requires extra investment, and risk.

I am told 3-year extension on lease for Aoka Mizu is due soon.
If they take that up then there is a risk that :
a) Wells water out and they are left with on-going expense.
b) Bond holders don't get repaid.

On the other hand : They could continue producing for another 12 months and, with a fair wind, pay the bonds off in full in 2022 without diluting the share holders by 95%. The company is not currently insolvent.

Hence current stand off between bondholders (almost certainly Kerogen) and the share holders.

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Re: Hurricane Energy (HUR)

#413912

Postby thehaggistrap » May 21st, 2021, 2:36 pm

The soap opera continues!
Court has refused HUR plans for restructuring and 95% dilution.
Judge agreed with share holders that it is premature and bonds could still be repaid in full in 12 months time.
Get your popcorn out for next RNS.

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Re: Hurricane Energy (HUR)

#413926

Postby Tinderboy » May 21st, 2021, 3:00 pm

WoW. Will the picture be any different to the incoming Where is the investment coming from? What if the 2nd downhole pump fails? Don’t think the bond holders will be happy either!

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Re: Hurricane Energy (HUR)

#413932

Postby thehaggistrap » May 21st, 2021, 3:08 pm

Tinderboy wrote:Where is the investment coming from?


Arguably they don't need investment to repay bonds if the well can keep flowing for 12 months?
Yes - it is risky and requires a fair wind. However with bonds not due for another 12 months and 10K bopd the company is not currently insolvent.

As I see it there are 2 issues:

1) Higher oil water contact and discrepancy with 2017 CPR has made project highly problematic.
2) Since then, a "new" board has acted in interest of un-disclosed bond holder (kerogen capital?) to ensure they maximise return on what is left at expense of shareholders.

Next RNS will be fascinating...

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Re: Hurricane Energy (HUR)

#413967

Postby dealtn » May 21st, 2021, 4:59 pm

ReallyVeryFoolish wrote:The HUR corpse seems to be twitching a little. Up nearly 40% today. Anyone who gambled a few days ago and bought HUR at 0.7p has doubled their money! Bizarre turn of events.

RVF


Not really. The equity is like an out of the money option and trading accordingly. The value of the company isn't changing much but the effect of the gearing on the equity is quite large.

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Re: Hurricane Energy (HUR)

#414007

Postby Tinderboy » May 21st, 2021, 7:55 pm

I’m sure some folk did double their money, but let’s face it this is a hard trade, red or black at the moment, the flip side it’s the inexperienced folk who trade their SIPP on a frenzy and lose the the lot!

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Re: Hurricane Energy (HUR)

#414282

Postby BobGe » May 23rd, 2021, 7:55 am

Tinderboy wrote:I’m sure some folk did double their money...

The spread was pretty large, so double would be rather lucky timing, if it were possible. But really HUR seems more like a liability than an asset. It's just gambling now. Nice for brokers and market makers though.

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Re: Hurricane Energy (HUR)

#414814

Postby murraypaul » May 24th, 2021, 10:38 pm

thehaggistrap wrote:The soap opera continues!
Court has refused HUR plans for restructuring and 95% dilution.
Judge agreed with share holders that it is premature and bonds could still be repaid in full in 12 months time.
Get your popcorn out for next RNS.


Posted today by Hurricane:

https://ir.design-portfolio.co.uk/viewer/6/12771

The Company confirms that the Court has given directions received today (the "Court Order") for the convening and conduct of the Bondholder Plan Meeting, which will be held virtually via video conference at 11:00 a.m. (London time) on 11 June 2021.

At the Bondholder Plan Meeting the Company will seek approval of the Restructuring Plan from Bondholders. In order to be approved by the Bondholders, the Restructuring Plan will require the support of 75% (by value) of the Bondholders present (virtually) or by proxy and voting at the Bondholder Plan Meeting.


The Company confirms that the Court gave directions in the Court Order for the convening and conduct of a virtual meeting (the "Shareholder Plan Meeting") of the Company's shareholders (the "Shareholders"), which will be held virtually via video conference at 12:00 noon (London time) on 11 June 2021 or, if later, as soon as possible thereafter as the Bondholder Plan Meeting shall have been concluded or adjourned.


At the Shareholder Plan Meeting the Company will seek approval of the Restructuring Plan from Shareholders. In order to be approved by the Shareholders, the Restructuring Plan will require the support of 75% (by value) of the Shareholders present (virtually) or by proxy and voting at the Shareholder Plan Meeting. Each Shareholder shall have one vote for each share held by such Shareholder.


As noted in the Previous Announcements, on 30 April 2021 Hurricane entered into a lock-up agreement (the "Lock-up Agreement") with an ad hoc group of Bondholders (the "Ad Hoc Committee").

The Company notes that, as at the date of this announcement, the Lock-up Agreement has been executed or acceded to by entities holding in aggregate approximately 83.51% by value of the Convertible Bonds.


Bondholders and Shareholders should note that in certain circumstances the Court may sanction a restructuring plan where one class of creditor or member dissents. Bondholders and Shareholders should refer to paragraph 1.5 of part 5 of the Explanatory Statement (defined below) and section 901G of the 2006 Act.

Shareholders and Bondholders are reminded that in the event the Restructuring Plan is not approved at one or more of the plan meetings, or if it is so approved but not sanctioned by the Court, the Restructuring will not be capable of being implemented. In that scenario, it is likely that there would be a controlled wind-down of the Group's operations followed by an insolvent liquidation of the Company.


The court order is available on the website.

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Re: Hurricane Energy (HUR)

#414819

Postby murraypaul » May 24th, 2021, 10:50 pm

From the explanatory notes, this is interesting:

4.28 On 30 April 2021, the Plan Company, certain other members of the Group, the original
Participating Bondholders and the Information Agent entered into the Lock-up Agreement,
pursuant to which the parties (except for the Information Agent) committed to support the
Restructuring and the Restructuring Plan and its implementation, subject to the terms of the
Lock-up Agreement and the appended term sheet. Bondholders who were not a party to the
Lock-up Agreement as of the date it became effective are permitted to accede to it. As at the
date of this Explanatory Statement, 83.51 per cent. by value of Bondholders have acceded to
the Lock-up Agreement. A summary of the key terms of the Lock-up Agreement is set out
below at paragraph 2 (Summary of the Key Terms of the Lock-up Agreement) of Part 8
(Summary of the Terms of Certain Restructuring Documents). The Plan Company entering
into the Lock-up Agreement, and the proposal of the Restructuring Plan, constituted an Event
of Default and a Potential Event of Default under the terms and conditions of the Bonds (the
Defaults), and the Plan Company has notified the Bondholders and the Trustee accordingly.
As of the date of this Explanatory Statement, the Trustee has not been instructed by the
Bondholders to take any action in relation to the Defaults. If approved, the Restructuring Plan
includes an instruction to the Trustee to waive any Event of Default or Potential Event of
Default which may have arisen from any action taken by the Plan Company or any Group
Company in connection with the Restructuring Plan, the Restructuring Documents and/or the
Restructuring, including the Defaults.


So the company have voluntarily defaulted on the bonds, and the bondholders have agreed not to act on that ... yet.
But they could if the restructuring is not agreed.


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