Hurricane Energy PLC Operational and Financial Update (4543S)
November 16 2021 - 1:00AM
UK Regulatory
TIDMHUR
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 25(th) 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
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
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
===============================================
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END
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