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Hurricane Energy PLC (HUR)

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Thursday 16 December, 2021

Hurricane Energy PLC

Operational and Financial Update

RNS Number : 8069V
Hurricane Energy PLC
16 December 2021
 

16 December 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, decommissioning activity, debt management and net free cash balances as of 30 November 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 November 2021.

 

November 2021 Lancaster Field Data

 


P6

P7z(1)

O il produced during the month (Mbbls)

304

-

Average oil rate (bopd)

10,124

-

W ater produced during the month (Mbbls)

177

-

A verage water cut(2)

37%

-

Well gauge p ressure (psia)(3)

1,610

-

1.  The 205/21a-7z ("P7z") well was not on production during November 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 of 14 December 2021, Lancaster was producing c.9,900 bopd from the P6 well alone with an associated water cut of c.38%.

 

The 26th cargo of Lancaster oil, totalling approximately 535 Mbbls, was lifted on 30 November 2021. The next cargo is anticipated to be lifted in January 2022.

 

During November 2021, the Company successfully completed the plugging and final abandonment ('P&A') of the Lancaster 205/21a-4z well for a cost of c.$1 million. $2.2 million of decommissioning security (previously classified as restricted cash) has now been released back to the Company and used in part to fund this P&A activity.

 

Financial Update

 

As of 30 November 2021, the Company had net free cash(4) of $127 million (which includes amounts receivable in respect of the cargo lifted on 30 November 2021) compared to the last reported figure of $99 million as of 31 October 2021.

 

As previously announced, subsequent to 30 November 2021, $72.2 million in aggregate principal amount of the Company's $230 million 7.50 per cent. Convertible Bonds due 2022 were repurchased by a subsidiary of the Company for a total cash consideration of $69.0 million (including accrued interest). Once cancelled, this will result in the aggregate principal amount of Bonds outstanding being reduced to $79.8 million.

 

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 remaining outstanding 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

[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

Mbbls

Thousand barrels

psia

pounds per square inch absolute

 

Inside Information

 

This announcement does not contain inside information.

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