Hurricane Energy PLC Aoka Mizu Charter Extension and Financial Update (1161G)
March 25 2022 - 10:40AM
UK Regulatory
TIDMHUR
RNS Number : 1161G
Hurricane Energy PLC
25 March 2022
25 March 2022
Hurricane Energy plc
("Hurricane" or the "Company")
Aoka Mizu Charter Extension and Financial Update
Hurricane Energy plc, the UK based oil and gas company, is
pleased to announce that it has signed a contract with Bluewater
(Aoka Mizu) B.V. ("Bluewater"), the owner of the Aoka Mizu FPSO,
for an extension to the Bareboat Charter beyond the current expiry
date of 4 June 2022.
The key terms of the extension are:
1. The charter has been extended to cover the remaining economic life of the Lancaster field.
2. Either party can give six months' notice to terminate the charter.
3. The existing day rate and tariff for the vessel remains at
$75,000 per day and 8% of revenue respectively.
4. Hurricane agrees to establish a secured deposit account of up
to $18.7 million for the benefit of Bluewater to cover the costs
associated with the day rate for the six-month notice period and
decommissioning in respect of the vessel.
Financial Update
In addition to the charter extension, the Company has negotiated
with BP Oil International, the purchaser of its crude oil, a
facility that will allow for cash to be advanced ahead of a
lifting. This provides the ability to create more frequent cash
receipts and assist with the Company's working capital. The
facility incurs a financing fee that is only payable if the Company
uses it.
Antony Maris, Chief Executive Officer of Hurricane,
commented:
"Securing the extension to the FPSO contract is an important
next step forward. It was key we found a mutually acceptable deal
that will enable the Company to continue production beyond
repayment of the bond. Based on the current oil price and field
performance predictions we forecast this to be at least 18 months
from 4 June 2022.
With production continuing in line with our projections, good
uptime performance on the FPSO and assuming oil prices are in the
range $90-110/bbl, we believe that post clearing our bond debt and
after funding the Bluewater secured deposit account, Hurricane will
have between $50-80 million of net free cash at the end of July
2022.
This is an important moment for the Company. Against the
backdrop of our demonstrable operational track record, financial
discipline and the significant rise in oil prices, we are preparing
Hurricane for the future. The UK Government's renewed emphasis on
security of supply is welcome. We are working hard to identify how
best to optimise capital allocation in future activities to build
further value for our shareholders, whether through further
investment in our existing portfolio, or in new opportunities in
the UK oil and gas sector, or both. "
-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
FPSO Floating production storage and offloading
vessel
Inside Information
This announcement is released by Hurricane Energy plc and
contains inside information under Regulation (EU) 596/2014 on
market abuse, as it forms part of domestic law by virtue of the
European Union (Withdrawal) Act 2018 (the UK MAR). For the purpose
of the UK MAR, this announcement is made by Antony Maris, Chief
Executive Officer at Hurricane Energy plc.
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END
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