TIDMHUR

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 26(th) 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 
  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 
 Mbbls   Thousand barrels 
        ================================ 
 psia    pounds per square inch absolute 
        ================================

Inside Information

This announcement does not contain inside information.

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END

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December 16, 2021 02:00 ET (07:00 GMT)

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