Well I don't know much about Dr Jenkins but I do know that when I read the RNS and saw that the new-non exec chairman will have input on the appointments of additional non-exec directors (quite rightly too) I did think to myself that the move to the main board isn't happening for at least six months.
Not a problem I suppose, plenty of news flow expected in the meantime.
I wonder, could Dr Jenkins be persuaded to become the permanent chairman and not just the interim. He looks ideally qualified to me.
If the prospective candidates have similar attributes then OK but if not, I hope that Dr T will have a quiet word with Dr J and he agrees to stay
When I was compiling my previous post I didn't realise you had made a comment on this morning's RNS.
This RNS could be the reason for today's bounce back.
When we eventually get onto the main market there will be fund managers that will have to buy shares in Hurricane to meet the investment strategy of their fund. It may be somewhat premature but I wonder if some fund managers will now be buying into Hurricane in anticipation of it's transition from the AIM casino onto the main market.
It was pleasing to see today's increase that followed yesterday's sharp drop in the share price. It could be that today's increase was due to the RNS released this morning.
Whilst to contents of the RNS have gone down like a lead balloon with no comments on this board, the progress being made towards admission to the main market is significant.
It looks as if a new Chairman could be appointed in the near future along with some additional non exec directors.
It's good to see that Dr Jenkins is still with Hurricane and is currently acting as Interim Chairman. I reckon it's important that Dr Jenkins remains with Hurricane once the new chairman and non exec directors are appointed.
Given Dr Jenkins' background, he could be the catalyst that could see Hurricane taken over by BP. Prior to his retirement he was the Chief Geologist at BP and his experience, knowledge and previous connection with BP could prove to be invaluable as Hurricane goes forward with the EPS on Lancaster. BP are on record as saying they wouldn't consider a bid for Hurricane until the EPS on Lancaster proves to be successful.
Dr David Jenkins Interim Chairman & Senior Independent Non Executive Director
David has spent over 50 years working in the oil and gas industry. He was at BP for the first 37 years, where he held the positions of Chief Geologist in 1979, General Manager in 1984 and was then Chief Executive, Technology for 10 years from 1987. He retired at the end of 1998 with the position of Chief Technology Advisor for the BP Group.
Following retirement from BP David held a variety of advisory and Board positions, including nine years as a Director on the Board of BHP Billiton.
David joined the Board in 2013 and is Chairman of the Nominations Committee and Chairman of the Remuneration Committee
Hurricane Energy plc, the UK based oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, provides a corporate governance update, following further progress in the work of the Company's Listing and Governance Committee ("LGC").
The Company previously announced that it was considering application for admission of its ordinary shares to a premium segment of a recognised stock exchange ("Premium Listing"). On the recommendation of the LGC, the Company is therefore transitioning its corporate governance policies and procedures towards best practice, benchmarked against those of a premium listed business. This includes compliance with the UK Corporate Governance Code (the "Code"), a standard not required of AIM-quoted companies.
As announced on 7 December 2017, Spencer Stuart, a leading executive search firm, is working for the Company to source a new non-executive Chairman. This process continues and the Nominations Committee will provide an update once an appointment has been made. Following the Chairman's appointment, the Company will seek to appoint additional independent non-executive directors, such that the Board becomes compliant with Provision B.1.2. of the Code. Such appointments will be made with input from the new Chairman.
To affirm their independence under the provisions of the Code, Dr David Jenkins and John van der Welle have relinquished, for nil consideration, the awards previously granted to them under Hurricane's non-executive director share option plan. The Company confirms that it does not plan to make share incentive awards to non-executive directors in the future. Dr Jenkins is currently acting as Interim Chairman and will therefore only be deemed independent upon appointment of the new Chairman.
The Board has also reconstituted membership of its Audit and Risk, Remuneration and Nominations committees. The updated terms of reference for the committees are available on Hurricane's website, www.hurricaneenergy.com. Upon appointment of the new Chairman, these committees are expected to be compliant with the relevant provisions of the Code and align with best market practice, for a company of Hurricane's size. Corresponding updates have been made to the Relationship Deed dated 18 April 2016 between the Company and its largest shareholder, Kerogen Investments No.18 Limited.
As Hurricane continues to enhance its corporate governance and consider a potential future application for a Premium Listing, the Company is planning to carry out a corporate governance roadshow with investors and proxy advisers to discuss the changes. These meetings, coordinated by Boudicca Proxy, will take place over the coming weeks and provide an opportunity for consultation with stakeholders on the developments taking place.
John van der Welle, Chairman of the LGC, commented:
"I am pleased to report that Hurricane's corporate governance practices continue to be enhanced based on recommendations of the Listing and Governance Committee. We look forward to discussing our plans for further changes with major shareholders on the upcoming corporate governance roadshow as we transition our disclosure, reporting and corporate governance standards towards best practice, commensurate with a Premium Listed business."
To be truthful, every time I have tried to trade, I have got it wrong, so I don't bother to try any more. I think"jonnie-fp" is absolutely correct, with the amount of potential news flow, the size of the assets, the location of those assets, so close to major oil company fields, this could take off big time, anytime. Knowing my luck, the day hour or minute after I sold, lol.
That apart, I have absolute faith in this company and Dr Trice. Just because the AIM market has yet to realise true value here, does not mean that it wont eventually be realised, imo. My first investment was about three weeks after IPO, and I am determined to see this become the major success story that I have no doubt it will be.
HTL/Floss. I've dipped a toe in again after selling out last March but if you've stayed in knee deep then one has to consider whether the cash is better employed elsewhere whilst waiting for 2019 - as you imply!
Bought back in at 33 recently. ".....good continuous flow." Yes, essential before any big beast shows a genuine interest although one or two fund managers may be tempted in the meantime. Over to the good Dr T.
Always tricky this. As a VLTH I did buy at bit more finally at 28p, because I thought it was a joke. But there are still uncertainties. Two steps really. Getting on station in time. Then proving good, continuous flow. THEN it's surely not less than £1. But how many more will buy between now and then? How many willing to buy more on this Board?
The board have advised that they would like to monetise their shareholders investments. The data room is open. The company has competent persons reports which advise significant oil volumes. Therefore the value of the company today increases as the price of oil increases as it will cost more for an acquirer to purchase those finds.
I was a bit worried that increasing production would soon catch up on the increasing consumption and result in a fall in the Poo. However, after looking at the 10 year graph http://www.macrotrends.net/2480/brent-crude-oil-prices-10-year-daily-chart
It would seem that $60 - $70 is about the ten year average with many years above that level. This would suggest that in practice people are either unable or unwilling to increase production (and thus hammer the price) perhaps because they cannot be sure what the future price will be and hence whether they will generate the income necessary to run the new wells and pay back the capital
It's rained recently as if we were in a primeval rain forest. It's been so wet in our garden that some of the moss has turned black and died. To have some sharp frosts and some snow will be a welcome relief.
Hurricane is starting to reward us long term holders who had faith in Dr Trice's project to get naturally fractured basement reservoirs West of Shetland up and running.
Looking ahead, the next two years is going to be both interesting and financially rewarding.
The EPS on Lancaster will be up and running with possibly several more production wells up and running providing Hurricane with an additional regular, profitable income.
Full field development will be in the pipeline.
Successful drilling on Hurricane's other assets will have been taking place.
A farm down on Lancaster will have brought cash into Hurricane's coffers.
However, it's questionable if Hurricane will still be with here in two years time. Hurricane will already be under microscopic analysis from predator companies. A take over bid could come in at any time. With the poo on the increase and world consumption of oil also increasing, the current sp could be seen as a bargain.
I wonder what a successful bid for Hurricane would be?
I hope you are well? I suspect that if you have not had it already, you are due some pretty cold weather with high risk of snow, so keep warm.
Yes, very nice to see this turning round again. We certainly have had to be patient here, so lets hope that this train is well and truly on it's way. Great assets, superb expertise in their field, first class work ethics, excellent forward planning. All driven by a man of vision, integrity and intelligence. What's not too like?
Mikemine: `I don't think we will need to mothball it or even lower production but its early days to be talking about that possibility IMO.'
Agreed. I sometimes write a bit `tongue in cheek' just to air an opposing view. I agree that whether or not oil holds up at $70 we have a very good investment and am pleased to find that the recent rally means that I am now in
Hurricane's share price has shown an increase for the the last six consecutive days and from a low of 24p on 29th Nov 2017 we are now threatening to break 40p. This is an increase of c65.00% in approx six weeks. Very impressive!
I wonder how high the sp will rise prior to foil from Lancaster and what will be the resulting sp if the long awaited farm in to Lancaster only materialises?
The buying appears to be relentless and it looks as if long term holders are going to be handsomely rewarded. For an oil company with no production to have the current market cap of £781 million is unprecedented.
Let's hope Hurricane continues to go from strength to strength.
Yes, what I would say to the shale producers is what I said a couple of years ago, when the OPEC countries continued to increase production with a view to taking the shale market share. Why deplete your reserves by selling a lot of oil for little money, when you can sell a lot less oil for more money. All you are doing is swapping profit for turnover. Maybe my logic is flawed, although I fail to see how.
Anyway, nice to see this is beginning to show strength again, as it should.
I'm not sure about shale. Conventional wisdom says shale will come back on stream when POO goes up and drop out when it goes below say $55. I think that is too simplistic. A lot of companies lost lots of money when oil dropped last time and it could be the same at every swing for shale. Even hardened risk takers would have to think about this in and out of profit and shale might find it increasingly hard to find backers at every upswing. On top of this we have increasing oil demand, despite renewables, and the view that shale is viewed as having a natural limit to increased production by many.
Either way I'm happy with HUR's position of being profitable at low levels of POO and thats the situation with the EPS. With FFD the figures will probably be even better. I don't think we will need to mothball it or even lower production but its early days to be talking about that possibility IMO.
Mikemine, good point but we cannot count on the Saudis and friends to hold back production if all it does is to bring lots of shale on stream and drops the price back to glut levels. The Saudis and friends would come under great pressure to increase production to recover their income despite the low (and going lower) price.
There is a solution of course, rather than develop Lancaster etc we could just
From memory, didn't AS say that at $40pb HUR would be netting $100mn pa and indicated an extra $50mn for every $10 rise in POO after that? It might have been £ and not $. That could be $250mn at these levels. You can do your own PEs but it puts a serious value on HUR which ever way you look at it IMHO.
johnnie, please don't go to any bother over this. The Vietnamese well is highly unlikely to be an exact match for ours in either OWC, geology, oil viscosity or how hard they sucked. Dr T was presumably pointing out that even FB's can be sucked too hard together with the important point that they can
johnnie: `FB well was sucked too hard, drew in water and compromised the well. It did recover.'
The important point is `It did recover.' Giving it a rest (or going back to a lower production rate) reduces the suction which means that the cone collapses to the point that it no longer replaces the oil flowing out. So when you have such a deep OWC and a large accumulation to shift, it probably makes sense to up the production rate until it is restricted by other parts of the system at least as a trial. It may well be that even sucking to the max is not going to be a
topsparky; We can't just open the taps and flow what we want, even though you really don't want to do that anyway in case the reservoir is compromised, potentially damaging future production!!!!!
I understand that in conventional reservoirs where the oil/water contact is just a few metres below the ceiling, pumping too hard risks water coning because the pressure drop of the oil being drawn along the strata quickly gets higher than the pressure drop produced by water flowing up from the OWC........But FB is not conventional.
In FB there would have initially been an anisotropic mix of cracks and fissures due to the deformation, but with any luck, due to the immense pressure of the overburden, these will have crushed down to pretty isotropic mixture. We know that the OWC is almost literally miles below rather than just metres and so we can pull oil from a growing hemisphere with a radius equal to the OWC distance before there is any danger of coning and even then, as soon as a cone commences, the height of it and the difference in specific gravity of the lighter oil will effectively reduce the suction, so the surface are of the hemispherical radius we will be drawing oil from will be enormous and the speed of flow through that hemisphere will be almost imperceptible at that distance even though the flow at the well is high.
So the EPS can and should test the limits (if we can suck that hard) so that the full field development can be
I think you guys have misunderstood what I was saying, I know the wells can flow higher but the Energy Voice article purported to a maximum that is allowed under the EPS permit, I wasn't referring to the individual well flow rates!!!!! We can't just open the taps and flow what we want, even though you really don't want to do that anyway in case the reservoir is compromised, potentially damaging future production!!!!!
It'll be specified in the permit and I've been trawling through trying to find it with no success as yet.
>> I know they are looking at 17k bopd but assuming both wells can flow
>> higher does anyone know what the potential maximum could be?
It's not known as the potential maximum may compromise the reservoir, this is one of the things the EPS is for, so we can text the flow rate without hurting the golden egg.
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