The production vessel used on Hurricane Energy s Lancaster field. Picture: Ralph Ehoff WEST of Shetland-focused Hurricane Energy has seen a dissident investor increase its stake in the business significantly after plans for a controversial restructuring were blocked. Hurricane Energy sparked outrage among investors after announcing plans to compete a debt-for-equity swap that would have left bondholders in control of the business. However, the High Court declined to approve the plan on the grounds that it would have deprived shareholders of all but a fraction of their equity and appeared to be premature. The decision was hailed as a victory for shareholders that had opposed the plan. These were led by the Crystal Amber Fund investment operation, which agitated for a boardroom coup.
“As a result there is a significant risk of no value being returned to shareholders,” said Hurricane. The uncertainty is heightened by the fact that Hurricane is facing a boardroom coup attempt. Activist investor Crystal Amber Fund has called for the chairman of Hurricane, Steve McTiernan, and all four non-executive directors to be removed from office with immediate effect. Shareholders will vote on the proposal at an extraordinary general meeting on Monday July 5. Tomorrow chief executive Antony Maris and chief financial officer Richard Chaffe could be voted off the Hurricane board at the company’s annual general meeting. They could continue to work for Hurricane without having seats on the board.
Picture: Hurricane Energy WEST of Shetland pioneer Hurricane Energy has posted a $625 million (£440m) annual loss after slashing the valuation of its oil and gas assets.
News of the loss follows a series of setbacks for Hurricane, which has seen its shares plunge from 60p to around 1p as a result. Hurricane helped generate huge excitement about West of Shetland after making finds in a relatively under-explored area of granite known as the fractured basement. It started production from the flagship Lancaster field amid fanfare in June 2019. However, Hurricane was forced to change its view about the fractured basement after the performance of Lancaster fell well short of expectations. The plunge in oil and gas prices triggered by the coronavirus crisis posed additional challenges for the firm last year. Hurricane’s founding chief executive, Robert Trice, resigned in June.
Picture: Hurricane Energy WEST of Shetland-focused Hurricane Energy is facing a fresh challenge after a court decided that shareholders should get a vote after all on a controversial restructuring it plans to complete. Hurricane has proposed a debt-for-equity swap that will result in creditors owning the vast bulk of the company. The Surrey-based business previously stoked excitement about the potential of the West of Shetland area after making what appeared to be big finds. Shares in the firm plunged after it suffered production reverses and slashed estimates of the size of the finds. The proposed restructuring plan has drawn scathing criticism from the Crystal Amber Fund investment business, which last week tried to instigate a boardoom coup at Hurricane.