(Alliance News) - Hurricane Energy PLC on Wednesday announced the publication of a Competent Person's Report on its West of Shetland assets by ERC Equipoise Ltd, the results of which are consistent with the company's own estimates.
Hurricane Energy also said it is continuing to talk with a group of its convertible noteholders over its forward work programme, strategy, financing and balance sheet recapitalisation.
Hurricane noted that there was a risk of dilution to existing shareholders from a potential restructuring or partial equitisation of the bonds.
Shares in the UK-focused oil & gas firm were 24% lower at 2.75 pence on Wednesday in London.
For the Lancaster field, assuming production only from the 205/21a-6 well and its natural decline, gross proved, probable and possible reserves come up to 10.8 million stock barrels, with a net present value of USD126.2 million at a 10% discount rate as at December 31.
Gross 3C contingent resources for the Lancaster field come up to 89.0 million stock barrels, should the P8 well be drilled in 2022 as planned.
In the Greater Warwick Area, the Lincoln discovery - in which Hurricane Energy holds a 50% working interest - has gross 3C contingent resources at 79.8 mmstb, while the Warwick Crest discovery has total contingent resources at 128.9 mmstb.
Hurricane also holds a 50% interest in Warwick Crest. Finally, for the Halifax well drilled in 2017, no contingent resources were found. For 2020, the company expects the carrying value of the well to be completely written off.
"The summary of the CPR published today is broadly consistent with the estimates for Lancaster and Lincoln which we presented in September 2020. We are continuing to work on a financial plan and are engaging with our key stakeholders to allow us to take the business forward and provide us with the best chance of targeting these reserves and resources," said Chief Executive Officer Antony Maris.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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