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 “research” in fact was entirely false.
88 Energy (London 88E US OTC EEENF) announced an operations update. Testing has commenced on the sidewall cores, cuttings, mud gas and fluid samples from Merlin-1 and results are expected over the next two to ten weeks. Initial mapping of additional prospective zones encountered in Merlin-1 is encouraging it says. Results announced by Pantheon Resources (London PANR US OTC PTHRF) on acreage adjacent to 88E’s Icewine project have positive implications and 88 Energy is now re-assessing the potential across its acreage. More on 88E in the private blog.
As you’ll notice, I’m now including the OTC trading symbols for those companies also quoted in the United States. This is the big market, which was very much demonstrated by the recent massive trading activity in the shares of 88 Energy. It also provides the ability to trade after the London market closes. More and more UK quoted companies are obtaining US trading symbols now, the latest being Helium Energy (London HE1), which announced last week that its shares will cross-trade publicly on the US OTC under the ticker HLOGF.
UK Oil & Gas (London UKOG) also has a US ticker, UKLLF, but it’s “Grey Market” and there’s a warning on the OTC Markets website stating that “Broker dealers are not willing or able to publicly quote these securities because of lack of investor interest, company information availability or regulatory compliance.” It might be something UK Oil & Gas should get sorted out.
Meanwhile, UKOG announced it has become one of the six founder members of the newly-formed Geothermal Energy Advancement Association. UK Oil & Gas says it is actively scoping two new standalone geothermal projects in the UK, together with a hybrid geothermal, solar and battery storage project at the Horse Hill site. It also plans to review geothermal opportunities onshore Turkey once the forthcoming Basur-3 appraisal well has been completed. At least it’s a possible use for their non-commercial well bores.
IOG, formerly Independent Oil & Gas, (London IOG) announced its name change and, more importantly, completion of its Phase 1 platforms, Blythe and Southwark. Installation of both platforms is scheduled to be completed before the end of Q2, in preparation for first gas in late Q3. As readers of the private blog know, I’ve been positive about IOG for some time and from much lower levels.
In the private blog this evening, PRD, DELT, IOG, LBE, 88E (EEENF), AEX (AEXFF), TRP (RTWRF), PVR (PVDRF), LOGP, HUR (HRCXF)and ARG (AORGF) (but please note that commentary on all of these is not necessarily positive). Further on that at https://www.oilnewslondon.com/oilman-jim
Contact me on Twitter @Oilman_Jim
Click “SUBSCRIBE” to receive these blog posts by email
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.