Hurricane Energy PLC Greater Warwick Area Update (1078W)
17 Dicembre 2021 - 7:29PM
UK Regulatory
TIDMHUR
RNS Number : 1078W
Hurricane Energy PLC
17 December 2021
17 December 2021
Hurricane Energy plc
("Hurricane" or the "Company")
Greater Warwick Area Update
Hurricane Energy plc, the UK based oil and gas company, provides
an update on its activities in the Greater Warwick Area
("GWA").
As announced on 14 October 2021, the GWA Joint Venture ("JV")
has been engaging with the Oil & Gas Authority (the "OGA") on
the technical re-evaluation and interpretation of the GWA licence
potential, and requesting a regulatory amendment of the obligation
to drill a well on the P1368(S) Lincoln licence, which must be
commenced on or before 30 June 2022, to a later commencement date .
The OGA has indicated, as part of its considerations, that it is
not content to support a deferral of the obligation well unless the
GWA JV partners satisfy the OGA that they will be able to fund an
obligation well in a timely manner.
In parallel with these discussions with the OGA, t he Company
has been exploring options to realise value for its equity share of
the GWA assets, including through third party funding for the
drilling of the Lincoln obligation well. To date, discussions with
external parties have not resulted in formalising any interest to
secure third party investment in the GWA assets.
The Company notes the announcements on 8 December 2020 by Spirit
Energy and its largest shareholder, Centrica plc, regarding the
strategic focus of its remaining UK assets and the limitation of
any further investment in exploration and appraisal.
Following discussions within the JV, the GWA JV has elected to
continue its plans to suspend further funding towards well planning
and drilling of the obligation well on Lincoln in 2022 . However,
funds continue to be made available in 2022 to promote the area's
prospectively.
Given both the Company's financial circumstances and the related
challenges of securing additional funding for the Lincoln
obligation well, the Company currently believes there is a
reasonable prospect that, unless the Company can secure an
alternative source of funds, the GWA JV will be unable to either
drill the obligation well in 2022 or to obtain a deferral of the
obligation well. As such, it is reasonably probable that the
P1368(S) licence sub area will be relinquished on or before 30 June
2022.
In the event that the P1368(S) licence sub area is relinquished,
the carrying value of the Lincoln asset in the Company's accounts
of c.$54 million would be impaired and a non-cash impairment charge
recognised.
The Company will continue to actively explore potential options
over the coming months to retain the P1368(S) Lincoln Licence.
Further updates will be provided in due course.
-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
GWA Greater Warwick Area, comprising the Lincoln
and Warwick fields located on UKCS licences
P1368 South and P2294
GWA JV Greater Warwick Area joint venture (Hurricane
50%, Spirit Energy Resources Limited 50%)
==============================================
OGA Oil and Gas Authority
==============================================
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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