Hurricane Energy PLC Operational and Financial Update (1435F)
July 14 2021 - 2:00AM
UK Regulatory
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
================================
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