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Hurricane Energy PLC (HUR)

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Tuesday 16 November, 2021

Hurricane Energy PLC

Operational and Financial Update

RNS Number : 4543S
Hurricane Energy PLC
16 November 2021
 

16 November 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 October 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 October 2021.

 

October 2021 Lancaster Field Data

 

 

P6

P7z(1)

O il produced during the month (Mbbls)

323

-

Average oil rate (bopd)

10,420

-

W ater produced during the month (Mbbls)

173

-

A verage water cut(2)

35%

-

Well gauge p ressure (psia)(3)

1,619

-

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

 

The Company is pleased to report that due to better than expected uptime on the FPSO, the production for October 2021 was above the Company's previous expectations for the month.

 

Previously the Company announced that it anticipated the well gauge pressure would reach the bubble point by the end of Q1 2022. While uncertainty remains, analysis of the most recent trends indicates that this point is now anticipated between late December 2021 and mid February 2022.

 

As of 14 November 2021, Lancaster was producing c.10,150 bopd from the P6 well alone with an associated water cut of c.37%.

 

As previously announced, the 25th cargo of Lancaster oil, totalling approximately 530 Mbbls, was lifted on 9 October 2021. The next cargo is expected to be lifted in late-November to early-December 2021.

 

Financial Update

 

As of 31 October 2021, the Company had net free cash(4) of $99 million (including the revenue from the lifting during October 2021), compared to the last reported figure of $73 million as of 30 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 but have not yet been accrued. As such, not all of the net free cash would be available for repayment of the Convertible Bonds at their maturity in July 2022.

 

Hurricane remains in positive negotiations with Bluewater over an extension to the Aoka Mizu charter beyond June 2022. An extension of the contract may require Hurricane to ring-fence material additional funds as security. Furthermore, changes to decommissioning estimates may result in the Regulator requesting additional funds be placed into trust and classified as restricted cash. These potential transactions would reduce the amount of free cash available to repay the Convertible Bond principal of $152 million due 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

[email protected]

 

+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

[email protected]

 

+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

bubble point

The pressure at which gas begins to come out of solution from oil within the reservoir

Mbbls

Thousand barrels

psia

pounds per square inch absolute

 

Inside Information

 

This announcement does not contain inside information.

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