(Correcting value of bond repurchase to USD62 million from GBP62 million.)
(Alliance News) - Oil producer Hurricane Energy PLC on Friday noted a return to pre-shutdown production levels at its flagship Lancaster oil field.
Shares in Hurricane Energy were trading down 3.5% at 3.28 pence each in London on Monday morning.
The Surrey, England-based company said: "The production rate immediately following the completion of the annual shutdown was elevated leading to the average oil rate for August being higher than in previous months."
According to Hurricane, the Lancaster field - located west of Shetland - was producing around 10,800 daily barrels of oil by September 15 with a 33% water cut.
The sole remaining P6 well produced an average of 11,467 barrels of oil each day in August, Hurricane added. Though August the average water cut was 29% down from 32% in July.
Previously, the company said its single remaining well at the field, P6, was due to reach levels noted prior to its shutdown in early July. Immediately prior to the shutdown in early July, the P6 well was producing 10,900 barrels of oil per day.
In late August, around 505,000 standard barrels of Lancaster oil were lifted in the 24th cargo from the field.
As of August 31, Hurricane had net free cash of USD144.0 million, up 18% from USD122.0 million at July 31.
On Wednesday last week, the company spent USD62 million to repurchase and cancel around 34% of its USD230 million outstanding convertible bonds. The bonds, which now total USD152 million, are due in July 2022.
Also on Friday, Hurricane noted the appointment of PKF Littlejohn LLP as its new external auditor, who are currently reviewing its interim results.
The oil company said it plans to release its interim results on October 14.
By Scarlett Butler; scarlettbutler@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
