Operational and Financial Update

RNS Number : 8869S
Hurricane Energy PLC
19 July 2022
 

19 July 2022

 

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 30 June 2022.

 

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 2022.

 

June 2022 Lancaster Field Data

 


P6

P7z(1)

O il produced during the month (Mbbls)

256

-

Average oil rate (bopd)

8,527

-

W ater produced during the month (Mbbls)

214

-

A verage water cut(2)

46%

-

Well gauge p ressure (psia)(3)

1,564

-

1. The 205/21a-7z ("P7z") well was not on production during June 2022

2.Expressed as total water produced divided by total fluid (oil and water) production

3.Pressure reported is the monthly minimum from well downhole gauges.

 

As of 16 July 2022, Lancaster was producing c.8,650 bopd from the P6 well alone with an associated water cut of c.46%.

 

There was no lifting of Lancaster crude in June. The next cargo is anticipated to be lifted later in July 2022.

 

Financial Update

 

As of 30 June 2022, the Company had net free cash(4) of $127 million compared to the last reported balance of $139 million as of 31 May 2022. $78.5 million of Convertible Bonds remain outstanding and are due to be repaid by 24 July 2022. Following the repayment, assuming oil prices remain at over $90/bbl, at the end of July the Company is forecasting to be holding net free cash in excess of $75 million. If oil prices for the July cargo are above $110/bbl, the net free cash forecast increases to be above $85 million.

 

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

 

Following the repayment of the Convertible Bond, the Company intends to reduce the frequency of its production and financial updates to quarterly rather than monthly, being more in line with standard industry practice.

 

Antony Maris, CEO of Hurricane, commented:

"With another steady month of production, we now look beyond repayment of the bonds with a strong cash position and balance sheet. We believe that there are good investment opportunities ahead and the Company is well placed to deliver significant shareholder value."

 

 

-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 / Charles Craven

+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.

 

Visit Hurricane's website at www.hurricaneenergy.com

Glossary

 

bbl

Barrels

bopd

Barrels of oil per day

FPSO

Floating production storage and offloading vessel

Mbbls

Thousand barrels

psia

pounds per square inch absolute

 

Inside Information

 

This announcement does not contain inside information.

 

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