Hurricane Energy PLC Operational and Financial Update (0768M)
September 17 2021 - 2:00AM
UK Regulatory
TIDMHUR
RNS Number : 0768M
Hurricane Energy PLC
17 September 2021
17 September 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 free cash balances
as of 31 August 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 August 2021.
August 2021 Lancaster Field Data
P6 P7z(1)
O il produced during the month -
(Mbbls) 355
------- -------
Average oil rate (bopd) 11,467 -
------- -------
W ater produced during the month 144 -
(Mbbls)
------- -------
A verage water cut(2) 29% -
------- -------
Well gauge p ressure (psia)(3) 1,637 -
------- -------
1. The 205/21a-7z ("P7z") well was not on production during August 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 noted, the production rate immediately following
the completion of the annual shutdown was elevated leading to the
average oil rate for August being higher than in previous months.
This increased production rate was accompanied initially by a
greater rate of decline, such that the current oil production is
now similar to the rate seen just prior to the shutdown.
As of 15 September 2021, Lancaster was producing c.10,800 bopd
from the P6 well alone with an associated water cut of c.33%.
As previously announced, the 24(th) cargo of Lancaster oil,
totalling approximately 505 Mbbls, was lifted in late-August 2021.
Over 10 million barrels of Lancaster crude have now been produced
and sold from the Lancaster field. The next cargo is expected to be
lifted in early- to mid-October 2021.
Financial Update
As of 31 August 2021, the Company had net free cash(4) of $144
million, compared to the last reported figure of $122 million as of
31 July 2021.
On 15 September 2021, Hurricane completed the repurchase of
approximately 34% of its outstanding $230 million 7.5% Convertible
Bonds due in July 2022 at a cost of $62 million (including accrued
interest), reducing the par value of Convertible Bonds held by
third parties to $152 million. The repurchased bonds were cancelled
on 16 September 2021.
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.
2021 Interim Results and appointment of external auditor
At the Company's most recent Annual General Meeting, held on 30
June 2021, the Resolution to re-appoint Deloitte LLP as the
Company's auditors was not passed. Following the outcome of a
tender process, the Company is pleased to confirm the appointment
of PKF Littlejohn LLP ("PKF") as its new external auditor. PKF are
now commencing their review of the Company's interim financial
statements for the six months ended 30 June 2021.
As such, the Company anticipates releasing its 2021 interim
report and half-year results on 14 October 2021, taking advantage
of the one-month extension allowable by AIM to release interim
financial statements within four months of the interim balance
sheet date rather than three months.
-ends-
Contacts:
Hurricane Energy plc
Antony Maris, Chief Executive Officer
communications@hurricaneenergy.com +44 (0)1483 862820
Stifel Nicolaus Europe Limited
Nominated Adviser & Joint Corporate Broker
Callum Stewart / Jason Grossman +44 (0)20 7710 7600
Investec Bank plc
Joint Corporate Broker
Chris Sim / Jarrett Silver +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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END
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