Hurricane Energy PLC - oil and gas producer in fields offshore west of Shetland - Says the Greater Warwick Area joint venture has decided to relinquish the P2294 licence area on the Rona Ridge, west of Shetland, after discussion with its partner Spirit Energy Ltd. Hurricane believes further appraisal and development costs are not feasible at Warwick. The carrying value of the P2294 asset of CAD4.1 million will be impaired. The impairment will be an accounting charge only and will not have any cash impact, Hurricane says. The move follows an earlier decision to relinquish the Lincoln P1368 licence sub area.
Hurricane Chief Executive Officer Antony Maris says: "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."
Hurricane operates the Lancaster field, which also is offshore west of Shetland. It has a 50% interest in the Greater Warwick Area licence, which contains the Lincoln and Warwick assets.
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By Xindi Wei; xindiwei@alliancenews.com
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