TIDMHUR
RNS Number : 3441I
Hurricane Energy PLC
14 April 2022
14 April 2021
Hurricane Energy plc
("Hurricane" or the "Company")
Competent Person's Report on the Lancaster Field & 2022
Production Guidance
Hurricane Energy plc, the UK based oil and gas company,
announces that the updated Competent Person's Report ("CPR") on the
Company's Lancaster Field by ERC Equipoise Ltd ("ERCE") has been
published on the Company's website at:
https://www.hurricaneenergy.com/assets/reserves-and-resources
ERCE's work has been prepared in accordance with the June 2018
Petroleum Resources Management System ("PRMS") as the standard for
classification and reporting with an effective date of 31 December
2021.
As shown in the tables below, ERCE have increased the estimated
Lancaster Reserves. The 31 December 2021 position is partly due to
an improvement in the expected future production and to an increase
in the economic life of the field aided by higher oil prices,
offset by the increased production during 2021.
2022 Production Guidance
On 29 September 2021, the Company provided production guidance
for the six-month period 1 October 2021 to 31 March 2022 of 8,500 -
10,000 bopd, based on FPSO production uptime assumption of 96.5%
and production from the P6 well alone on artificial lift via ESP.
Production during this six-month period was 9,689 bopd, reflecting
continued excellent uptime on the FPSO combined with production
rates towards the upper end of the range.
Management's production guidance for the full calendar year 2022
is 7,500 - 8,600 bopd. This assumes FPSO production planned uptime
of 96.5% and production from the P6 well alone on artificial lift
via ESP. Guidance includes the impact of an annual maintenance
shutdown, anticipated to occur during Q3 2022.
Antony Maris, CEO of Hurricane, commented:
"The efforts of the surface and subsurface teams in beating the
mid-case performance target set at the start of the forecast period
have been superb. Together with excellent uptime across all
elements of the system has allowed the Company to benefit from the
higher than expected oil prices and enabled more reserves to be
added in the updated CPR. This supports management's production
forecast for the years to come.
Going forward we look to maintain the excellent performance of
both the well and the FPSO while we also focus on the Company's
next steps."
Lancaster Reserves and Resources
ERCE's estimates of Reserves for the Lancaster field as of 31
December 2021
Gross Net attributable
to Hurricane
1P 2P 3P 1P 2P 3P
Developed Reserves
(MMbbl)(1) 4.1 5.8 9.1 4.1 5.8 9.1
NPV10 (US$m)(2) 40.0 70.8 117.4 40.0 70.8 117.4
Notes:
1. In determining the economic Reserves for the Lancaster field,
ERCE has assumed a nominal Brent oil price forecasts of US$75/bbl
in 2022, US$71/bbl in 2023, US$69/bbl in 2024 and US$70/bbl in
2025. In line with PRMS guidelines, the nominal oil prices assumed
are those forecasts made as at the effective date of the CPR, being
31 December 2021. Prices are escalated at 2.0% per annum
inflation.
2. NPV10 equates to the net present value of cash flows from the
Lancaster field at a 10% discount rate at the effective date of 31
December 2021
ERCE's estimates of Contingent Resources for the Lancaster field
as of 31 December 2021
Gross Net attributable
to Hurricane
1C 2C 3C 1C 2C 3C
Contingent Resources,
Development Unclarified
(MMbbl)(3) 11.3 35.4 86.9 11.3 35.4 86.9
3. Contingent Resources, Development Unclarified, assume
additional development wells and / or water injection is
implemented as part of any further development; and contingent on
regulatory consents, funding and execution during the lifetime of
the existing Lancaster wells.
A summary of the movements in net attributable 2P Reserves as
compared to the previous CPR (effective date of 31 December 2020)
is as follows:
Net attributable 2P Reserves
(MMbbl)
At 31 December 2020 7.1
Produced during the year (3.7)
Change in assumptions and economic
life 2.4
At 31 December 2021 5.8
Review by Qualified Person
The technical information in this release has been reviewed by
Antony Maris, Chief Executive Officer, who is a qualified person
for the purposes of the AIM Guidance Note for Mining, Oil and Gas
Companies. Mr Maris is a petroleum engineer with more than 35
years' experience in the oil and gas industry. He has a B.Sc.(Eng.)
Petroleum Engineering (Hons) from the Imperial College of Science
and Technology (University of London) Royal School of Mines
A.R.S.M. and an MBA from Kingston Business School.
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.
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
ESP Electric submersible pump
FPSO Floating production storage offloading vessel
MMbbls Millions of barrels of oil
PRMS Definitions
1C Denotes low estimate of Contingent Resources.
2C Denotes best estimate of Contingent Resources.
3C Denotes high estimate of Contingent Resources.
1P Denotes low estimate of Reserves (i.e., Proved
Reserves). Equal to P1.
2P Denotes the best estimate of Reserves. The
sum of Proved plus Probable Reserves.
3P Denotes high estimate of reserves. The sum
of Proved plus Probable plus Possible Reserves.
Contingent Resources Those quantities of petroleum estimated,
as of a given date, to be
potentially recoverable from known accumulations
by application of
development projects, but which are not currently
considered to be
commercially recoverable owing to one or
more contingencies.
Contingent Resources, A discovered accumulation where project activities
Development Pending are ongoing to justify commercial development
in the foreseeable future.
Contingent Resources, A discovered accumulation where project activities
Development Unclarified are under evaluation and where justification
as a commercial development is unknown based
on available information.
Developed Reserves Reserves that are expected to be recovered
from existing wells and
facilities. Developed Reserves may be further
sub-classified as Producing or Non- Producing.
Economic Limit Defined as the time when the maximum cumulative
net cash flow (see Net Entitlement) occurs
for a project.
Net Entitlement That portion of future production (and thus
resources) legally accruing to an entity
under the terms of the development and production
contract or license. Under the terms of PSCs,
the producers have an entitlement to a portion
of the production. This entitlement, often
referred to as "net entitlement" or "net
economic interest" is estimated using a formula
based on the contract terms incorporating
costs and profits.
Reserves Reserves are those quantities of petroleum
anticipated to be commercially recoverable
by application of development projects to
known accumulations from a given date forward
under defined conditions.
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.
, the news service of the London Stock Exchange. RNS is approved by
the Financial Conduct Authority to act as a Primary Information
Provider in the United Kingdom. Terms and conditions relating to
the use and distribution of this information may apply. For further
information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDEAFLDFFLAEAA
(END) Dow Jones Newswires
April 14, 2022 02:10 ET (06:10 GMT)
Grafico Azioni Hurricane Energy (LSE:HUR)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Hurricane Energy (LSE:HUR)
Storico
Da Apr 2023 a Apr 2024