Hurricane Energy launches own sale after unsolicited bid

Hurricane Energy launches own sale after unsolicited bid
Hurricane Energy launches own sale after unsolicited bid

LONDON, Nov 2 (Reuters) – North Sea oil and gas producer Hurricane Energy (HUR.L) has launched a formal sale process after receiving an unsolicited bid from an anonymous bidder that its board of directors administration considers too low, he said on Wednesday.

Last year, Hurricane effectively handed control over to its creditors in a debt-for-equity swap after it downgraded its flagship field and production outlook, with its share price crashing to less than 1 cent in May 2021.

The bidder has offered 7.7p per share in cash, a 13% premium to the average market closing price of 6.8p per share on Tuesday, a price that Hurricane’s board does not recommend not up to its shareholders to accept, he said.

It says it will have $118 million in cash at the end of the year at an oil price of $90 a barrel and has $370 million in so-called tax losses that can be offset by future tax bills in Britain.

Hurricane’s largest shareholder with about 29%, Crystal Amber Fund, told the company it wanted to monetize its stake, Hurricane said.

He added that if the sale process does not result in a deal, it will raise up to $70 million in the first quarter of next year, with further payments possible in the future.

Reporting by Shadia Nasralla; edited by Jason Neely

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. Hurricane Energy launches own sale after a offer solicited

. Hurricane Energy launches sale unsolicited bid

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