TIDMHUR

RNS Number : 1435F

Hurricane Energy PLC

14 July 2021

14 July 2021

Hurricane Energy plc

("Hurricane" or the "Company")

Operational and Financial Update

Hurricane Energy plc, the UK based oil and gas company, provides an update on Lancaster field operations and net cash balances as of 30 June 2021.

Lancaster Field Operations Update

The following table details production volumes, water cut and minimum flowing bottom hole pressure for the 205/21a-6 ("P6") well during June 2021.

June 2021 Lancaster Field Data

 
                                       P6     P7z(1) 
 O il produced during the month                 - 
  (Mbbls)                             319 
                                    -------  ------- 
 Average oil rate (bopd)             10,640     - 
                                    -------  ------- 
 W ater produced during the month               - 
  (Mbbls)                             144 
                                    -------  ------- 
 A verage water cut(2)                31%       - 
                                    -------  ------- 
 Well gauge p ressure (psia)(3)      1,647      - 
                                    -------  ------- 
 
   1.       The 205/21a-7z ("P7z") well was not on production during June 2021 
   2.       Expressed as total water produced divided by total fluid (oil and water) production 
   3.       Pressure reported is the monthly minimum from well downhole gauge 

As previously announced, on 8 June 2021, the electric submersible pump ("ESP") in the P6 well tripped, which led to Lancaster production being temporarily reduced while the root cause of the trip was investigated. The successful restart of the P6 ESP was announced on 16 June 2021.

The 23(rd) cargo of Lancaster oil, totalling approximately 530 Mbbls, was lifted in mid-June 2021.

The Aoka Mizu FPSO is currently undergoing its scheduled annual shutdown, which is expected to last for approximately two weeks. Immediately prior to the shutdown in early July 2021, the field was producing from the P6 well alone at 10,900 bopd with an associated water cut of 32%.

Financial Update

As of 30 June 2021, the Company had net free cash(4) of $134 million, compared to the last reported figure of $127 million as of 31 March 2021. The main movements over the three-month period were:

-- Revenue of c.$69 million from two liftings of Lancaster crude in the second quarter resulting in an average realised price of c.$66/bbl, compared to an average Brent price of $69/bbl for the same period

   --    Operating costs and G&A of c.$36 million 
   --    Net cash capital expenditure of c.$1 million 
   --    Convertible bond coupon payments of c.$4 million 

-- Net movement to restricted cash of c.$12 million (including additional decommissioning security)

-- Increase in net working capital of c.$9 million, the majority of which are accruals relating to the Lincoln-14 well plug and abandonment activity

The Company believes that net free cash provides a useful measure of liquidity after settling all its immediate creditors and accruals and recovering amounts due and accrued from joint operation activities, outstanding amounts from crude oil sales and after settling any other financial trade payables or receivables. It should be noted that the net free cash is calculated as at the balance sheet date and does not take into account future liabilities that the Company is already committed to. As such, not all of the net free cash would be available for repayment of the Convertible Bonds at their maturity in July 2022.

4. Unrestricted cash and cash equivalents, plus current financial trade and other receivables, current oil price derivatives, less current financial trade and other payables.

-ends-

Contacts:

 
 Hurricane Energy plc 
  Antony Maris, Chief Executive Officer 
  Philip Corbett, Head of Investor Relations    +44 (0)1483 862820 
 Stifel Nicolaus Europe Limited 
  Nominated Adviser & Joint Corporate Broker 
  Callum Stewart                                +44 (0)20 7710 7600 
 Investec Bank plc 
  Joint Corporate Broker 
  Chris Sim / Rahul Sharma                      +44 (0)20 7597 5970 
 
 Vigo Consulting 
  Public Relations 
  Patrick d'Ancona / Ben Simons 
  hurricane@vigoconsulting.com                  +44 (0)20 7390 0230 
 

About Hurricane

Hurricane has a 100% interest in and operates the Lancaster field, the UK's first field to produce from a fractured basement reservoir.

Hurricane also has a 50% interest in the Greater Warwick Area licence, which contains the Lincoln and Warwick assets.

Visit Hurricane's website at www.hurricaneenergy.com

Glossary

 
 bopd    Barrels of oil per day 
 Mbbls   Thousand barrels 
        ================================ 
 psia    pounds per square inch absolute 
        ================================ 
 

Inside Information

This announcement does not contain inside information.

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END

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