Re: Hurricane Energy (HUR)
Posted: 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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https://www.lemonfool.co.uk/
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
ReallyVeryFoolish wrote:FabianBjornseth wrote:Expronews reports on the Halifax "discovery" - no new insights, but a short summary of events to date:
https://expronews.com/company-news/the-billion-barrel-west-of-shetland-discovery-that-didnt-exist/
Thank you Fabian. As this sorry story slowly unfolds, drip, drip, drip. The scale of half truths (if not outright lies) and deception is mind blowing in proportions. How on earth this can happen in a supposedly civilised and just society is breath taking. Nobody seems to be held to account. I suppose that's a large part of why AIM market is the choice for such misadventures.
The whistle blower (I forget the name) at the OGA who was silenced after voicing serious concerns about HUR seems to have been on the money. That makes government depts part of the "crime". Utterly disgraceful.
RVF
ReallyVeryFoolish wrote:Nimrod103 wrote:ReallyVeryFoolish wrote:Thank you Fabian. As this sorry story slowly unfolds, drip, drip, drip. The scale of half truths (if not outright lies) and deception is mind blowing in proportions. How on earth this can happen in a supposedly civilised and just society is breath taking. Nobody seems to be held to account. I suppose that's a large part of why AIM market is the choice for such misadventures.
The whistle blower (I forget the name) at the OGA who was silenced after voicing serious concerns about HUR seems to have been on the money. That makes government depts part of the "crime". Utterly disgraceful.
RVF
A bit unfair on the OGA I would say. It is not their job to comment on the technical merits or otherwise of any particular field or prospect. It is their remit to encourage companies to explore, develop and produce as much as possible to the maximum benefit and minimum detriment of the UK taxpayer.
Caveat emptor
If you want to point fingers, point them at those who produced the competent persons' reports.
You miss the point, perhaps? An OGA staff member expressed serious concerns about the assets Hurricane Energy were so bullish about. I recall he was asked to resign and his concerns not taken seriously. Yes I absolutely agree with you, the untruths (lies?) were well documented elsewhere by others. But OGA do not have clean hands as far as I can see. I really need to see if I can find the articles relating to the OGA staff, if I can. Anyway, nothing will happen, it's history now.
Edited to add - Malcolm Pye, OGA Geologist.
https://www.energyvoice.com/oilandgas/n ... -shetland/
RVF
“Based on the 2017 Competent Person’s Report, I decided that an investment in Hurricane had a very good chance of success,” said Doug Bryce, a private investor who has recently sold his Hurricane shares at a significant loss. Not having a technical subsurface background himself, it is the CPR that people like Doug and many other investors help to guide their decision to invest. His line of thinking was, “Even in case the development only makes the P90 volumes, it would still be ok.” A fair point, one would argue.
In hindsight, he made a mistake, as it has turned out.
The second CPR that was published last week proved that the trust Doug had put into the initial assessment was misplaced, as the volumes now estimated for the Lancaster field have been reduced from 486 MMboe of 2C Contingent Resources in 2017 to 34.7 MMboe of 2C Contingent Resources in 2021.
FabianBjornseth wrote:ExproNews has a follow-up article, putting the focus on the Competent Person's Report system. They also have a private investor in Hurricane on record, who has a story to tell which is probably shared by many:“Based on the 2017 Competent Person’s Report, I decided that an investment in Hurricane had a very good chance of success,” said Doug Bryce, a private investor who has recently sold his Hurricane shares at a significant loss. Not having a technical subsurface background himself, it is the CPR that people like Doug and many other investors help to guide their decision to invest. His line of thinking was, “Even in case the development only makes the P90 volumes, it would still be ok.” A fair point, one would argue.
In hindsight, he made a mistake, as it has turned out.
The second CPR that was published last week proved that the trust Doug had put into the initial assessment was misplaced, as the volumes now estimated for the Lancaster field have been reduced from 486 MMboe of 2C Contingent Resources in 2017 to 34.7 MMboe of 2C Contingent Resources in 2021.
https://expronews.com/resources/the-competent-persons-report-system-is-ready-for-review/
thehaggistrap wrote:Wow.... 95% dilution. FWIW : back in October the head of investor relations (Phil Corbett) assured me on phone that dilution wasn't an option. However he had a history of lying to me but not putting it in writing/email. Thankfully I didn't trust him and sold out - like everyone at a large loss....
It isn't mentioned who the bond holders are in today RNS. However I am near certain that KEROGEN CAPITAL just acquired Hurricane Energy on the cheap. The £50 million they paid to acquire the company is peanuts and easily covered by the cash in bank!
Despite the well documented problems the whole thing stinks. Kerogen clearly see something in the corpse...
Tax right off against debt, acreage, cash in bank <etc>. They commissioned the revised technical report then quit their seat on board (Dr Parsely) once that work was delivered.
The new-board (Anthony Marris and co.) have deliberately trashed share price to a point where there are no long term share holders left to vote against this.