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Shares of Hurricane Energy PLC (LON: HUR) have been stuck trading sideways for the past month amid a lack of significant announcements from the oil mining company that operates on the UK continental shelf.
The company’s fundamentals are not very promising after it dashed investor hopes with the postponement of drilling a new well at its Lancaster project from 2021 to 2022.
Investors were not pleased with the announcement,w which could explain why its shares have been trading sideways in March.
Luckily for the company, oil prices have been rising recently, which could trigger a surge in its revenues if oil prices trend higher for an extended period.
Hurricane has a unique operating model where it focuses on discovering, appraising and developing hydrocarbon resources associated with naturally fractured basement reservoirs.
The company managed to grow its revenues last year to $179 million compared to the $170.3 million reported in 2019 despite the coronavirus pandemic’s impact on oil prices and demand fall to historic lows.
However, the company’s output fell slightly towards the end of the year as it took some of its reservoirs offline for evaluation and management purposes.
Other factors weighing on Hurricane Energy’s share price include the conflict with Crystal Amber, a significant shareholder, regarding some of the board’s latest decisions. The fund that owns11% of the Hurricane’s shares has threatened to take actions to get a say in its decision-making processes.
We could see a proxy fight develop with Crystal Amber trying to install some of its preferred directors on the Hurricane’s board, which may not bode well for its share price.
Hurricane Energy share price.
Hurricane Energy shares have been stuck trading sideways in March. Will they break out in April?
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