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Ray to appear on Shark Tank....
No, not really, but may as well open a Kickstarter or GoFundMe account. (they only take 15pct right?)
I see where shareholders are getting another round of emails from Katalyst. I received one myself and I'm starting to wonder how many rounds this funding will go....
So SAPETRO deposit may be non issue.
With today's presidential decree, SAPETRO now has 30 days to deposit $5M guarantee money, refundable when the drill ship arrives on site. Since the ship has to be on site by May 30th to commence "drilling operations", the government may only get a few days of interest on their deposit.
This is just a matter of amusement for me, but it points out how quickly things are moving along. It may seem painfully slow sometimes, but in the larger scheme of things, this is all happening pretty fast...
Slideshow for SHM posted
http://investors.hyperdynamics.com/common/download/download.cfm?companyid=HDY&fileid=937926&filekey=B1C0EEF1-EB51-4DCE-BFF9-320C9E53D4EA&filename=AnnualShareholderMeeting2.pdf
Spud Fatalla mid June
Bamboo now first choice for follow up well (with higher reserve estimate than Buried Hill)
Looks like still shopping financing, not as encouraging as it could be at this late date.
Good timing on announcements and lack therof.
So we now have a signed farmout deal pending presidential signature, which has not been an issue in the past.
Sergey has been promoted to his promised position of CFO, which would seem to foreshadow a finance deal in place pending above mentioned approval.
Ray gets a happy(er) room of investors for BOD vote before having to reveal terms of additional financing.
I'll continue to wait for financing terms to be revealed, but I am generally pleased to see progress being made toward drilling.
GLTA!
Well initial market reaction seems positive. Hopefully this will help funding.
I am of the opinion that remaining funding has been negotiated and was/is dependent on completion of any and all partnership deals. I expect to see funding announcement shortly after government approval of this deal if there are no other farm outs in the works (and I doubt there are).
Good deal for Sapetro, but HDYN not in a bad position with 50% ownership and control going into drilling vs 37% and no control on the failed partnership.
Now we just wait for the other shoe to drop on funding to see where we potentially stand.
Attaboys in order for not waiting until the drop dead to sign the deal this time.
GLTA
Glad they are making some progress. A bit disappointed there still has to be a "but" in every announcement.
The only certainty right now is uncertainty. So the share price continues to suffer. If the company were to announce a SIGNED JV deal soon the share price could recover to a point that would make an offering less dilutive. Further, if they get their partner and CAN raise the remainder of funding needed for drilling, this might be seen as a positive.
This involves a lot of things coming together in a very short time. Obviously the odds are against this in the current market, but I'm still rooting for the company (and myself.
If the potential partner is in for 50% split then HDYN should recover half of moneys already spent. This should provide a small cushion to the 18M offering mentioned.
Just saw the full Iroquois settlement posted today.
https://www.lawinsider.com/contracts/2n6QMIMpLRCAyAEYIXxa9v/hyperdynamics-corporation/937136/2017-03-03
Now that the drill date has been moved to May, there may be some consequences to the settlement shares being registered in April.
Also interesting to note that they have the right to a "piggyback" offering if HDYN does a public offering prior to the registration date. Subject to several limitations of course.
Well I traded a few shares today. Increased my holdings by about 10% and have some extra cash now in case the bridge financing is under a buck. Really all I can do at this point the way I see it.
Hopefully Ray and Co can pull another one out of their hat.
GLTA.
So I understand the need for bridge financing and don't really have a problem with it. But if they do not have the financing in place yet, and they plan to offer shares, WHY would you announce it on a conference call and pull the rug out from under the share price???
I will give benefit of the doubt that terms are already in place on this but scary stuff.
Well, the presentation slides show the "tubulars" arriving in Guinea so guess that part is answered...
http://files.shareholder.com/downloads/HDY/3683646513x0x931236/42FF30FC-C5D2-46A6-88DC-C7C7439C20BF/HDYN_Webcast_slides_March_0317.pdf
...now for the rest of the show...
I had seen that. Odd chance that they sold off some holdings to pay legal fees. I was further speculating that they might be at risk for having some assets frozen, which might take a chunk of HDYN shares off the market. Unlikely, but something to ponder while waiting for news....
Much going on right now. A member on the other board posted that they had contacted IR and were told Ray was on his way back from Guinea. Maybe he decided to stay over since SH meeting was postponed?
Probably a lot to get organized in country as we get close to promised drill date. Equipment, personnel, facilities etc. (not to mention staffing the info desk LOL)Possible meetings with ministers re partner(s)?
I'm kind of curious if the stock dump the other day had anything to do with the Watts bros circling the wagons rather than any insider news. In a perfect world they would be enjoined from any stock trading right before Fatalla strikes with positive results. Unfortunately the courts move too slow for that to happen.
I also expect news prior to SHM. With the random scheduling of shareholder meetings I have to figure that it is not coincidental that ROG granted a postponement of the security instrument until Feb 20th. Obviously the contract with SAPETRO did not get completely hammered out in the original time frame the company was hoping for. Not a big deal, but I expect the "security instrument" they prefer to use may be tied to the finalization of that contract.
It makes sense to hold the SHM as soon as possible thereafter to spread the word and give the share price a bump prior to an offering to cover the remainder of 1st well costs. Also protects the current BOD for a year if a new major holder emerges from the offering.
While many hold out hope for a 2nd partner to be announced, I personally feel the odds are about 30/70 against at this point. (But hoping I'm wrong) I just don't see a 2nd deal being contingent on the 1st deal plus getting it all put together neatly prior to Feb 27th.
Just my opinions as always.
Sooo Pacific Scirocco made it in to Abidjan. Company says Schlumberger will outfit the rig there. This would be a convenient place to load on the long lead items from Tullow reducing transportation costs. However, this might preclude them from meeting the contractual commitment to have them in Guinea by due date.
Any thoughts?
Funding drillship with lottery tickets?
With the contract agreement for the drillship due on the same day as the proxy I see a couple of scenarios.
a) there is already a private placement lined up waiting for the vote. But it seems to me it would take a couple of days to process this and they couldn't meet the monetary commitment for the contract until it was closed.
b) Pacific drilling has agreed to some type of stock/warrant deal to guarantee the contract. This would be pretty far fetched, but these are unusual times.
Either way the market seems to see a strike price of 1.20 on whatever kind of deal is in the works.
Suppose we'll know something on the 29th...
Everything is interdependent right now as far as funding the drilling.
While drilling costs are lower, it is because oil is lower. Thus a farm out is worth less. A farm out should increase the value of shares , depending on terms, making it easier to raise any remaining capital needed. However, it will fix a market value on the concession which could limit upside until drilling is underway.
I see no reason for Ray to vary from his past strategy, which is to use only the equity needed to make a discovery and hold back as much as practical/possible for higher valuation after a discover is made. So I expect a farmout, private placement, or combination thereof that will fully fund Fatalla with some cushion. If there is discovery then funding for additional wells will be less dilutive. Although plans will have to be in place to move quickly.
All purely speculation, but it's what we do here while waiting to see what evolves.
Pacific Drilling PACD (OTC) for anyone interested.
Last report http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11228667
Quote https://finance.yahoo.com/quote/PACD/?p=PACD
Quick look gives the impression that we should have no weirdness out of the drillship owners or debt holders. appears to be a Transocean partnership (at arms length). Tough debt structure, but probably not unusual for the industry. I'm sure this year won't look as good for them as last, but all companies have tough years right?
We're set up for a 225K day rate on a vessel that was contracted at 615K 2 yrs ago so if they are comfortable with that, I am too.
JMHO
Conference call: Mixed review
I like the positive tone and confidence in the work schedule.
I was very disappointed to learn that they did not have at least a financing framework in place before releasing the partners.
IMHO a merger would be the worst possible outcome for shareholders. If he is looking for best value for us that would not even be on the table. We would only get current market value for shares which would then be diluted into a larger company. A major discovery would have minimal impact on a larger company, perhaps a double at best. Whereas an independent discovery would provide multiples of current valuation even with 3X-4X share dilution.
Fingers crossed for a partner deal....
That, of course, would be the jewel of the fleet. I never got good understanding of how tullow wrote off that contract. If it was a pay to park, or just a straight buyout. My former employer once "wrote off" a facility, just meant we couldn't use it for 2 yrs, then they repurposed it after the tax period.
I see the Stena putter around the port from time to time, so seems it is staying in readiness.
West Africa deep water rig counts. Sept 2016
http://oilpro.com/post/27354/deepwater-rigs-looking-for-the-bottom
Does not specify by type, but one would imagine there is a 6th gen rig available in there somewhere.
Complete stats:
https://www.ihs.com/products/offshore-oil-rig-data.html
O/T Friday funny for shareholders..
I think any long time shareholder can relate to this 1994 Houston Rockets commercial.
Feeling better now. With presidential signoff it would be much harder for the government to reverse track now. Hopefully government will continue to remain stable.
This should take the leash off of any pending funding or partnership deals that may have already been worked out. (I remain hopeful that something is already working)
GLTA we've got a pony in the race again...
Pretty aggressive presentation. In some ways good to see the optimistic confident style returning to these events.
I remain concerned about funding for the drilling. I would have seriously hoped there was some kind of firm commitment prior to committing to a specific date. Perhaps we are still waiting for official Presidential signature before that can be finalized. But if Ray is "shopping" the deal that's a pretty huge risk.
Interesting to note that E-Seis is just a couple floors up from Hyperdynamics offices, so not not hard to figure out where that connection came from. I see their work cited in a few places so not an upstart technology it seems.
Also good to see "working" management being added. Sometimes executives are so removed from the process in large companies that they can't function when they move to smaller, more nimble, operations.
Finally, I still see comments around hoping the company will team up with a major. Unless it is strictly a cash investment, I think this would be a bad scenario as hyper needs to move quickly and efficiently towards drilling. They also need to remain flexible in their options in case of further adversity. Giant corporate partners are not the best fit for this IMHO.
Strikes me as ironic and a bit humorous.
After all these years, all the dealings, and all the times many of us were worried that some group or the other was trying to edge Hyperdynamics out of the concession. Here we sit with 100% of the (albeit reduced)concession and no debt.
Strange daze indeed....
Thanks for keeping us in the loop. Sounds like they are starting to get a handle on things again. Waiting for a drilling plan before I get too optimistic.
Extension approved. For those who have not already seen:
http://finance.yahoo.com/news/hyperdynamics-republic-guinea-agree-one-142600609.html
So I guess we will know fairly soon (after presidential signing)if Ray already has a partner/financing lined up for a drill. The proverbial $43 mil question....
Yep, looks like he already had a deal in his pocket when he kicked the loosers to the curb. Shame to see em get off so easy, but reality is the company would have probably never survived long enough to see a dime of settlement money by the time lawyers and courts hashed through it.
So moving forward (because we have to). In released communications from the initial court filings, it was indicated that Ray had a partner in place to assume Dana's responsibility but Tullow rejected them. For arguments sake, lets say that was a commitment for 23pct of the original $115mil drill estimate or $26.45 mil. Now the drill estimate is down to $46mil. Is it a stretch to think that partner might still be interested in 49 pct of the concession for a $46mil commitment? Or perhaps even less cash if HDYN can still fund some of the drilling (they have the long lead items if they haven't evaporated again)
Might want to double check your strike price before you post a statement like that.
"Mr. Leonard elected to receive 100,000 shares of HDYN Common Stock and $50,000 in lieu of his Employment Contract incentive bonus amount of $200,000 in cash and 50,000 incentive stock options. "
I'm not a fan of corporate paper printing, but not the case in this instance. He gave $150,000 and gave up 50,000 options for those shares. I'd say he's still underwater on the transaction.
All it does it make me say hmmmmm...
On the surface it looks like HDYN just gave up on the arbitration. Basically letting the partners off the hook in exchange for a chance to keep the concession alive.
With a month left on the existing contract the only hope of this is to get the requested extension from the government. Then there are still no guarantees the company can do any more with the concession in 1 year than they have in the last 10 years.
So we are left with the question WHY? Is something already informally agreed with the government? Is a handshake agreement in place with those who were lined up to assume Dana's participation (which Tullow shot down)? Is there a yet to be revealed white knight waiting in the wings?
It could just be wildcatting at it's best. Do whatever you can to keep the oil! But, as always, the truth is probably somewhere in the middle. Undoubtedly we won't have to wait as long for events to unfold in this scenario. I 'll be watching...
I wonder if Tullow got a nastygram from the minister as well...
https://www.africaintelligence.com/AMA/exploration-production/2016/07/26/conakry-threatens-action-against-rio-over-simandou%2C108175921-EVE?utm_source=AMA&utm_medium=email&utm_campaign=AUTO_EDIT_SOM&did=108126950&eid=237992
If past performance is an indicator, they are shooting for July 20th. They will actually have something on Aug 20th, and they won't announce it until after the close on Sept 2nd when everyone has left for the holiday weekend...
(who me, cynical?)
Just call me Gucci
Have my bag secured. I was fortunate (?) enough to liquidate as the FM was announced. After the wash period I started buying back in. Since then I have actually ended up with a slightly larger position, but obviously at a much lower cost average. It is still not a significant investment for me though. I also have a tax loss booked that will take a few years to work off in the current market climate. For me, it was so far down that it is irrelevant if it goes to zero or not so why not hang on for the ride (and entertainment value).
Good luck to everyone involved.
Tullow Trading Statement and Operational Update
http://www.tullowoil.com/Media/docs/default-source/Media/Press-releaes/tullow-oil-plc---trading-statement-and-operational-update---jun-2016.pdf?sfvrsn=4
No news or even mention of Guinea as expected.
There is a line item in the financials for onerous contracts of 0.1B in the 1st half and 0.2B for the fiscal year.
"Expenditure on onerous contracts ($bn) 0.1 0.2"
Might be related to HDY, but no way to know.
Outside that, the market seems to like their workaround for the Jubilee field and they are still planning on bringing TENS online soon. So maybe their financial position will improve...
http://www.bloomberg.com/news/articles/2016-06-30/tullow-oil-cuts-16-output-estimate-amid-work-on-ghana-fpso-fix
Half year results from Tullow due on July 26th.
While it may not be directly related to the British vote, it could be indirect as the general market goes down and investors flee risk and have cash needs.
My general observation over the years is that large corporations handle uncertainly poorly. Usually with knee jerk reactions to protect the corporate coffers "just in case". This makes any negative prophecies of an event self fulfilling. For HDY it means Tullow has yet another uncertainty to deal with, which probably will freeze them in the headlights again and stall any progress being made. We can only hope clear heads prevail.
Just my .02
Reading between the lines of the most recent filing:
My interpretation is that July is the internal drop dead date for salvaging a drilling operation. After that they would presumably go into "settlement mode" and determine what to do with any recovered funds or assets.
Hence the desire to postpone decisions about retaining mgmt until Aug. Obviously Amoruso and Wesson decided to take what they have and wait it out on the sidelines if necessary.
Which only leaves the nagging question of if they would make a dividend to shareholders of any remains from a settlement or would their egos lead them into additional ventures with the cash?
I'm still holding onto the thin hope of a drilling event...
Form 8-K for HYPERDYNAMICS CORP
6-Jun-2016
Change in Directors or Principal Officers
Item 5.02(e) Departure of Directors or Certain Officers; Election
of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Effective as of October 1, 2015, Hyperdynamics Corporation ("we," "our," or the "Company") entered into employment agreements with each of Paolo Amoruso, our Vice President of Commercial and Legal and Corporate Secretary, and David Wesson, our Vice President and Chief Financial Officer. The Amoruso and Wesson's Employment Agreements appear as Exhibits 10.19 and 10.20 to the Form 8-K filed by the Company on October 7, 2015. The Company and Ray Leonard, the Company's Chief Executive Officer, is also a party to an Amended and Restated Employment Agreement dated July 23, 2012, which was filed with the Commission as Exhibit 10.5 to Form 10-K on September 13, 2012.
Each of the Employment Agreements provide for an annual term ending June 30th of each year, which automatically renews for successive one year periods unless notice of non-renewal is given by May 31 by either the Company or the executive officer. On May 26, the Company provided each of the executives a letter requesting to defer until August 31, 2016, the time period by which the executive or the Company could deliver notice of non-renewal. Mr. Leonard agreed to the terms of the letter and deferred the period during which notice could be given. The extension does not otherwise change or affect any of the terms of Mr. Leonard's Employment Agreement, provided however, no other rights to additional compensation or benefits shall accrue in favor of Mr. Leonard during the deferral period unless and until it is determined whether Mr. Leonard's Employment Agreement is renewed for an additional one year term commencing July 1, 2016.
Messrs. Amoruso and Wesson did not agree to the terms of the deferral letter and as a result, effective as of May 31, 2016, the Company elected not to renew the term of Messrs. Amoruso and Wesson's Employment Agreements. Non-renewal does not affect Messrs. Amoruso and Wesson's status as executive officers of or their employment with the Company. Non-renewal also does not otherwise change or affect any of the terms of their Employment Agreements or any accrued but unpaid compensation or benefits under their respective Employment Agreements.
Messrs. Amoruso and Wesson's employment ends upon the expiration of their existing Employment Agreements on June 30, 2016 due to the Company's notice on non-renewal. The Company may seek to enter into new arrangements with Messrs. Amoruso and/or Wesson prior to the June 30, 2016 expiration of their existing Employment Agreements.
So about that FM.......
Even though it appears neither HDY or the ROG recognized it, did it still happen?
Which is to say is Tullow operating under the assumption that there are a couple of months to work with after the original Sept deadline due to their declaration of FM?
This could allow for drilling after arbitration if it doesn't drag out?
Just a thought. Nothing to do but speculate while waiting...
I can't speak for dloggold, but I do see a swing trade here if some positive action were to come out of preliminary negotiations.
I see the possibility as low in the short term and would therefore prefer a lower entry point as the longer this drags on the lower the bar will go. Longer term, there are probably better plays out there, but this is all about risk anyway...
Sooooo RL buying on the open market?
You got me on this one.
- Expression of optimism?
- Sending a message from the confines of arbitration?
- Trying to rally the troops?
- Hoping to boost the share price for a funding deal?
Whatever the case, it seems to be having some effect. I'll keep watching.