By the beginning of July, Hurricane Energy’s shares have soared 4.09 GBP, the highest point in 2021. To a great extent, the highest point was reached right after the lowest one set on the period of May-June, when the company was in “stagnation”. Nevertheless, by June 9, the values fell by 25 % resulting in 3.1 GBP. For the last three days, the share price has clawed back to 3.4862 GBP with a +/-1% daily difference. Hurricane Energy has recently been in rough seas. It encountered serious production problems in the Lancaster offshore oil field in the West Shetland Islands. This left him with a staggering $230 million in debt, which will be repaid in July next year. The board of directors proposed a plan for lenders to accept a cut of $50 million in exchange for 95% of Hurricane’s stock. However, shareholders rejected the plan earlier this month. As a result, the board’s attempt to get the High Court to dismiss them failed yesterday.
So, is there a need to buy Hurricane Energy shares now? The answer is no. Britain’s share of oil remains heavily indebted and may eventually push its value to zero. Shareholders may be hoping that the company’s news this week heralds a new era. Or, at the very least, allow them to receive a half-decent return on their investment. However, the company is far too risky for me.
Finance and Entertainment Reporter
Richard is a bottle of wine – the older the sweeter. He has already found the sweetest hobby in writing entertainment and finance news for Own Snap. Readers get the updated posts regularly from him searching for real-time news.