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Showing posts from May, 2021

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88 Energy (AIM & ASX 88E OTC EEENF ) announced another operational update.   There are three highlights: encouraging evidence of oil in down hole samples is being investigated in the laboratory; additional fluorescence has been recorded at previously unidentified depths; and final payment of vendors in stock is being made.   Costs associated with the Merlin-1 well have now been largely finalised and 88 Energy 's net share of well costs is estimated to be around the $9 million mark. Helping preserve the cash balance, though, discussions with vendors of services provided to 88E during Merlin-1 operations have resulted in further willingness to accept partial payment for their invoices in 88E stock in lieu of cash and the company will now issue 345,000,000 new ordinary shares at a price of A$0.025 per share (total A$8,625,000) in order to finalise these payments.   88 Energy says this will leave it in a strong financial position ahead of next winter's exploration program.

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None too impressed with a debt for equity swap which values their shares at less than 0.1p, 14.7% shareholder Crystal Amber Fund (London CRS ) has filed a requisition notice to remove the Hurricane Energy (London HUR US OTC HRCXF ) non-executive directors and appoint their own nominees.   It’s good news for equity holders and the share price more than doubled last week.   Crystal Amber says there may well have been a failure by HUR ’s board to act in accordance with section 172 (1) of the Companies Act 2006, which states that a director must act in a way most likely to promote the success of a company.   However, their most damning statement, worth repeating in full, is that “on 14 January 2021, Hannam & Partners published research paid for by Hurricane .   It estimated a "risked net asset value" of 10p a share, valuing the equity at £199 million.   This assumed an average price for Brent crude oil of $60 a barrel, compared to a current price of approximately $69 a bar

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Hurricane Energy (London HUR US OTC HRCXF ) announced an update on its proposed financial restructuring.   Subject to directions of the court, a meeting of the bondholders is to be held on 4 June 2021 to consider and, if thought fit, approve the restructuring plan.  Hurricane is warning shareholders and bondholders that in the event the restructuring plan is not approved, either by the bondholders or the court, it is likely that there would be a controlled wind-down of operations followed by an insolvent liquidation of the company. Even if approved, in return for releasing $50 million of the principal amount outstanding under the convertibles, bondholders will receive ordinary shares comprising 95% of the fully diluted pro forma equity of the company, which values the existing equity at less than 0.1p per share.   I’ve been warning about HUR all the way from the low 30s down and all that was necessary to see what was going to happen here was to read and understand the consequences

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So, at last, it’s time to say goodbye to Anglo African Oil & Gas (London AAOG ), which announced its cancellation of trading on AIM.   AAOG has featured numerous times in the blog over the past few years and not in a good way.   It’s perhaps the company I’ve criticised the most and I’ve been right about it all the way down from 20p to oblivion.   What went wrong with it?   First, those with actual understanding of the project and the requisite experience all left the company over three years ago and secondly, terminally, the board was willing to enter into any arrangement necessary to obtain finance, regardless of how damaging it may have been to the shareholders’ interests.   Anglo African ’s failure was inevitable and I’m sorry for all those who thought they knew best. On to more positive matters, Predator Oil & Gas (London PRD ) issued an operational update.   The MOU-1 well remains on schedule to commence drilling during June 2021, dependent upon the completion of drilli

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Hurricane Energy (London HUR US OTC HRCXF ) announced its proposed financial restructuring.   As I said in the blog a few weeks ago when the share price was at 2.7p, the shareholders are done for.   In return for releasing $50 million of the principal amount outstanding under the convertibles, bondholders will receive ordinary shares comprising 95% of the fully diluted pro forma equity of the company.   That values the existing equity at just $2.63 million, which is £1.9 million, less than 0.1p per share. I’ve actually been warning about Hurricane Energy all the way from the low 30s down.   It was more or less clear what was going to happen here and no special skill was required to know.   All you needed to have done was to read in full - and understand the consequences of - the contents of HUR ’s RNS announcements.   For those who got hurt, perhaps to protect yourselves in future, it’s worth remembering who was touting Hurricane Energy over the past year or so and recall that their