Hurricane Energy PLC Operational and Financial Update (7950B)
16 Febbraio 2022 - 08:00AM
UK Regulatory
TIDMHUR
RNS Number : 7950B
Hurricane Energy PLC
16 February 2022
16 February 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 31 January 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 January 2022.
January 2022 Lancaster Field Data
P6 P7z(1)
O il produced during the month -
(Mbbls) 299
------ -------
Average oil rate (bopd) 9,639 -
------ -------
W ater produced during the month 196 -
(Mbbls)
------ -------
A verage water cut(2) 40% -
------ -------
Well gauge p ressure (psia)(3) 1,595 -
------ -------
1. The 205/21a-7z ("P7z") well was not on production during January 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 gauge
As of 14 February 2022, Lancaster was producing c.9,500 bopd
from the P6 well alone with an associated water cut of c.41%.
The 27(th) cargo of Lancaster oil, totalling approximately 530
Mbbls, was lifted on 25 January 2022. This cargo was priced by
reference to the average of the first five days of January's Dated
Brent quotes, being $81.4/bbl. The next cargo is anticipated to be
lifted in late March 2022.
Financial Update
As anticipated, and in line with previous announcements, the
Regulator has now formally requested that the Company lodge
additional funds as decommissioning security. The Company remains
in discussions with the Regulator as to the exact amount and timing
of placing of these funds into trust which are currently expected
to be up to GBP5.7 million ($7.7 million), later in Q1 2022. This
will increase the amount of funds placed into trust, and which are
therefore classified as restricted cash, from GBP28 million to
GBP33.7 million.
During January, the Company received $3.2 million of cash
rebates relating to R&D tax claims in respect of the 2019 tax
year. An additional c.$1.3 million claim in respect of the 2020 tax
year is still under review by HMRC but is anticipated to be
received later in Q1 2022.
As of 31 January 2022, the Company had net free cash(4) of $85
million ($77.3 million after taking into account the above
mentioned planned increase in restricted cash) compared to the last
reported balance of $50 million as of 31 December 2021. $78.5
million of Convertible Bonds remain outstanding and due July
2022.
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
===============================================
Regulator Department for Business, Energy and Industrial
Strategy
===============================================
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END
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