Hurricane Energy PLC Operational and Financial Update (8869S)
July 19 2022 - 01:00AM
UK Regulatory
TIDMHUR
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 214 -
(Mbbls)
------ -------
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
===========================================
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