(Alliance News) - Hurricane Energy PLC is reviewing its future capital spending plans, it said on Thursday, amid the crash in the oil price.
Brent was quoted at USD26.12 a barrel on Thursday morning, having been as high as USD70 per barrel earlier in the year.
Hurricane has "significant" cash balances, it said, with USD164.3 million of unrestricted cash available as at Wednesday this week. This is enough to meet obligations and committed costs as they fall due.
However, given the macroeconomic environment, Hurricane is reviewing its spending plans beyond current commitments.
Turning to 2019 financial results, Hurricane delivered revenue of USD170.3 million from none the year before. The Lancaster early production system in the North Sea achieved first oil in June.
Hurricane achieved a pretax loss of USD1.8 million, narrowed from USD60.9 million, with the underlying pretax profit figure USD30.0 million after a loss of USD16.7 million a year before.
Lancaster produced an average of 12,900 barrels of oil per day over 2019. Guided production in 2020 is 18,000 barrels per day.
"Against this difficult backdrop, today we announce our full-year results for 2019, Hurricane's first year with production. The Lancaster EPS is the first phase of development of our substantial Rona Ridge assets," said Chief Executive Robert Trice.
"Achieving first oil marks the culmination of many years of appraisal and development activity. Doing so safely, on schedule, and on a budget is a remarkable achievement and a huge credit to our operating and development teams and our Tier 1 contractors."
Shares were 2.9% higher on Thursday morning in London at 9.57 pence each, though they were well above 40p late in 2019.
By George Collard; georgecollard@alliancenews.com
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