Source - LSE Regulatory
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)

Oil produced during the month (Mbbls)

319

-

Average oil rate (bopd)

10,640

-

Water produced during the month (Mbbls)

144

-

Average water cut(2)

31%

-

Well gauge pressure (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 23rd 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

 

Inside Information

 

This announcement does not contain inside information.

 

 

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