REG - Hurricane Energy PLC - Operational and Financial Update

Hurricane EnergyAnnouncement

19/07/2022 07:00

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RNS Number : 8869S  Hurricane Energy PLC  19 July 2022

19 July 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 30 June 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 June 2022.

 

June 2022 Lancaster Field Data

 

                                          P6     P7z((1))
 Oil produced during the month (Mbbls)    256    -
 Average oil rate (bopd)                  8,527  -
 Water produced during the month (Mbbls)  214    -
 Average water cut((2))                   46%    -
 Well gauge pressure (psia)((3))          1,564  -

1. The 205/21a-7z ("P7z") well was not on production during June 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 gauges.

 

As of 16 July 2022, Lancaster was producing c.8,650 bopd from the P6 well
alone with an associated water cut of c.46%.

 

There was no lifting of Lancaster crude in June. The next cargo is anticipated
to be lifted later in July 2022.

 

Financial Update

 

As of 30 June 2022, the Company had net free cash((4)) of $127 million
compared to the last reported balance of $139 million as of 31 May 2022. $78.5
million of Convertible Bonds remain outstanding and are due to be repaid by 24
July 2022. Following the repayment, assuming oil prices remain at over
$90/bbl, at the end of July the Company is forecasting to be holding net free
cash in excess of $75 million. If oil prices for the July cargo are above
$110/bbl, the net free cash forecast increases to be above $85 million.

 

4.Unrestricted cash and cash equivalents, plus current financial trade and
other receivables, current oil price derivatives, less current financial trade
and other payables.

 

Following the repayment of the Convertible Bond, the Company intends to reduce
the frequency of its production and financial updates to quarterly rather than
monthly, being more in line with standard industry practice.

 

Antony Maris, CEO of Hurricane, commented:

"With another steady month of production, we now look beyond repayment of the
bonds with a strong cash position and balance sheet. We believe that there are
good investment opportunities ahead and the Company is well placed to deliver
significant shareholder value."

 

 

-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.

 

Visit Hurricane's website at www.hurricaneenergy.com
(http://www.hurricaneenergy.com)

Glossary

 

 bbl    Barrels
 bopd   Barrels of oil per day
 FPSO   Floating production storage and offloading vessel
 Mbbls  Thousand barrels
 psia   pounds per square inch absolute

 
Inside Information

 

This announcement does not contain inside information.

 

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