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 of the contents of Hurricane’s RNS announcements. It’s now 0.7p.
Another one where people appear not to read the RNS announcements is Serinus Energy (London SENX US OTC SNUYF Warsaw SEN.WP). I commented on the disparity of prices between the London and Warsaw exchanges previously and said in the private blog in March that I was dubious regarding Serinus since its share price appeared to have been manipulated in Warsaw to encourage buying / enable distribution in London. Since then, the share price is down in both venues.
SENX last week announced interim results for the three months ended 31 March 2021 and reported a loss of over $1 million. I mentioned this on Twitter last week and my statement was met with vehement denials. It’s difficult at times to understand how people can be so ignorant and stupid, particularly when we’re talking about a simple fact stated by the company itself in an official RNS announcement. One of the loss deniers was even describing himself as an accountant, while failing to understand the difference between the statement of cash flows and the statement of comprehensive loss. It’s perhaps no wonder that such people lose money in these markets - as do those who listen to them.
PetroTal (London PTAL US OTC PTALF Toronto TAL.V) announced an operational and corporate update. The 7D well has been successfully drilled and completed, flowing at an initial rate of approximately 3,700 bopd during its first 10 days of production; and has averaged approximately 4,550 bopd during the past three days, during which time Bretana oil field production has averaged approximately 11,100 bopd. Two wells, representing 1,200 bopd, are currently shut in awaiting increased water injection pump enhancements.
PetroTal’s goal is to end 2021 at 18,000 to 19,000 bopd and, to help enable that, the 3WD water disposal well now is being drilled and completion is expected mid-June. This will enable the disposal of an additional 50,000 barrels of water per day and accommodate the company's expected production growth until mid-2022. I mentioned PTAL positively last November at 7.6p, after having been rather negative from the low 30s down. It’s now 15p.
In other news, Reabold Resources (London RBD) and Union Jack Oil (London UJO) announced that Gaffney, Cline & Associates has been appointed to prepare a competent person's report in respect of PEDL183 following the testing of the WNB-1Z and WNA-2 wells. It’s the big event for these two and is expected to commence this month. Meanwhile, Bahamas Petroleum Company (London BPC US OTC BSHPF) announced an extension of the open offer timetable until 18 May 2021. Funds are obviously not coming in too easily. The Saffron-2 well in Trinidad and Tobago is hoped to spud on 23 May 2021.
Finally, IOG (London IOG) announced a collaboration agreement with GeoNetZero CDT. The key focus will be on proving which fields and aquifers across the Bacton catchment area are the most suitable carbon sinks, particularly where existing infrastructure could provide operational synergies. Essentially, further greening of their North Sea gas project.
In the private blog this evening, PRD DELT 88E EEENF IOG LBE AEX AEXFF TRP RTWRF PVR PVDRF LOGP RKH RCKHF ADV CVN.AX CVONF and MATD PRTDF (but please note that commentary on all of these is not necessarily positive). Further on that at https://www.oilnewslondon.com/oilman-jim
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The author may hold one or more investments in one or more of the companies mentioned so this post cannot be viewed as independent research. This post does not constitute investment advice or a recommendation to buy or sell and may be incorrect or outdated.