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Shares of Hurricane Energy PLC (LON: HUR) surged 18.28% after its main shareholder Crystal Amber raised their stake to 23.09% from the previous 14.32%. Investors cheered the move, which is likely to give the investment fund more control over the company.
Crystal Amber has in the past lamented that Hurricane Energy’s directors had little skin in the game, which had led them to make decisions that were not in the company’s best interest.
The activist investment firm has been lobbying to appoint directors to the oil company’s board, a move that Hurricane’s executives have primarily ignored.
Investors are eagerly waiting to see Crystal Amber’s next moves, given that Hurricane Energy’s shares have risen 180% from their June 23 opening price of 1.50p to their current trading price of 4.20p.
Today’s announcement explains why Hurricane Energy’s share price was rising over the past ten trading days as Crystal Amber bought more shares in the company fueling the rally.
Hurricane Energy’s shares are now up 55.54% in 2021 after the latest rally. Investors appreciate the positive impact of Crystal Amber’s actions on the company that could eventually save it from imminent collapse.
The oil company’s future came under significant threat after the downgrade of the probable and proven reserves at its Lancaster oil field earlier this year, which slashed the resource estimates from the initial 2.6 billion barrels of oil equivalent to a meagre 7. Million barrels.
Investors will be watching Hurricane Energy’s future steps closely as Crystal Amber fights to take control of the firm and probably save it from plunging into administration in future.
*This is not investment advice.
Hurricane Energy share price.
Hurricane Energy shares surged 18.28% to trade at 4.20p, rising from Friday’s closing price of 3.551p.
Hurricane Energy shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Hurricane Energy shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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