REG - Hurricane Energy PLC - Greater Warwick Area Update

Hurricane EnergyAnnouncement

01/06/2022 07:00

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RNS Number : 4778N  Hurricane Energy PLC  01 June 2022

1 June 2022

 

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 28 April 2022, the GWA Joint Venture ("JV") has reassessed its
understanding of the area, evaluating both the basement and the Mesozoic
potential of the JV's licences and has considered all options for further
appraisal and routes to possible development.

 

Hurricane has determined that further appraisal and development costs to reach
an economic development on the Warwick discovery within the remaining licence
term is not feasible for the Company. Further to discussions with the
Company's JV partner, Spirit Energy, the GWA JV has decided to relinquish the
P2294 licence area. This is in addition to the previously announced decision
to relinquish the Lincoln P1368(S) licence sub area.

 

The carrying value of the P2294 asset in the Company's accounts of c.$4.1
million will be impaired.  This impairment will be an accounting charge only
and will not have any cash impact.

 

Antony Maris, CEO of Hurricane, commented:

 

"We have made this decision deploying the rigorous screening criteria we bring
to all opportunities in terms of determining the most appropriate allocation
of our capital to deliver the best value for shareholders. There is no
reasonable expectation that the P2294 licence could generate any near-term
cash realisation, thus voluntarily relinquishing the licence at this time
allows the Company to focus its time and financial resources on alternative
and more attractive opportunities.

 

Following the recent May lifting we have updated our cash forecast such that
if oil prices remain over $90/bbl we now forecast to have over $70 million of
net free cash((1)) post bond repayment.  As such we are looking to utilise
this cash to generate the best return for shareholders at an acceptable level
of risk."

 

1.         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                             +44 (0)1483 862820

 Antony Maris, Chief Executive Officer

 communications@hurricaneenergy.com

 Stifel Nicolaus Europe Limited                   +44 (0)20 7710 7600

 Nominated Adviser & Joint Corporate Broker

 Callum Stewart / Jason Grossman

 Investec Bank plc                                +44 (0)20 7597 5970

 Joint Corporate Broker

 Chris Sim / Jarrett Silver / Charles Craven

 Vigo Consulting                                  +44 (0)20 7390 0230

 Public Relations

 Patrick d'Ancona / Ben Simons

 hurricane@vigoconsulting.com

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
(http://www.hurricaneenergy.com)

 

Inside Information

 

This announcement contains inside information as stipulated under the market
abuse regulation (EU no. 596/2014). Upon the publication of this announcement
via regulatory information service this inside information is now considered
to be in the public domain.

 

 

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