The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I await an RNS regarding the FPSO extension and for how long. If they enter into a contract for 12 months or more surely they can’t be expecting Lancaster to run dry in the next 6 months as blue water would not be interested in extending, so for me personally thats the next big bit of news.
I still think that mention today is a scare tactic, for what reason I don’t know but either way it’s put the brakes on the SP which is very frustrating. We should be back above 5p and cruising, considering they are producing approx 10,000 bopd at current Brent prices.
Good to see a bit of recovery. Still think there are games here with the mention of what could happen at Lancaster in H1 2022. A clarification RNS would be welcome.
Profit I was sitting on yesterday mostly gone but it is what it is. Anything around 3p is still ok in my view let’s see where it settles. I’m still a bit baffled by the RNS though. There must be more to it.
Let’s hope so, the assets are still there I suppose.
No doubt this will tank today. Raging tbh. I really don’t see why that paragraph was put in.
Why state that production could cease completely, that’s a very worrying statement. Basically everything looks ok for now with around 8500-10500 bopd but come Q1 2022 they drop that bombshell?
Hurricane Energy plc, the UK based oil and gas company, provides an update on production guidance from the Lancaster field, which takes into account additional production and pressure data gathered since the annual maintenance shutdown in July 2021.
On 30 April 2021, the Company provided annual production guidance for the full year 2021 of 8,500 - 10,500 bopd. The Company continues to forecast that average production for the year is expected to remain within this range. This annual guidance is based on an FPSO production uptime assumption of 90% and production from the P6 well alone on artificial lift via ESP. The production uptime assumption of 90% includes the impact of the annual maintenance shutdown, evenly spread across the year.
As previously announced, the Company has committed to providing six-monthly updates on production guidance. Management's production guidance from the Lancaster field for the six month period 1 October 2021 to 31 March 2022 (the "Period") is 8,500 - 10,000 bopd, which is based on an improved FPSO production uptime assumption of 96.5% and production from the P6 well alone on artificial lift via ESP. The increase in the uptime assumption is a combination of there being no planned maintenance shutdowns anticipated in the Period, and reflecting the excellent production uptime that has been seen on the FPSO to date.
The guidance for the Period is slightly lower than the average for the full year 2021 due to the expected gradual production decline from the reservoir over time, partially offset by the higher FPSO uptime assumption.
Based on current trends, management estimates that wellhead flowing pressure in the Lancaster reservoir may reach the bubble point by the end of Q1 2022, consistent with the time range estimation previously announced on 25 May 2021. Whilst this has been factored into the guidance for the Period, there will remain a degree of uncertainty regarding the full impact of this, along with the risk that gas liberated from the reservoir could be produced which could result in production either being reduced or ceased altogether.
Antony Maris, CEO of Hurricane, commented:
"The Company has benefited from higher than expected oil prices and excellent performance to date of the FPSO. As a result of the combined efforts of the Hurricane and Bluewater teams, we anticipate being towards the upper end of our production guidance for 2021 and this is also reflected in our guidance for the next six months to 31 March 2022."
Prob a bit of profit taking this afternoon. I’m not surprised as day traders will take the 20% plus yesterdays rise. I’m not selling until I see double figures.
I lost on HUR years ago and swore I’d never buy in again but I always kept and eye on it as the assets where staggering. I did buy back in over the last few months when I seen that the ex bod were gone and I’m now in profit. Not back to what i lost but in time
I think I will be and I hope many others who lost out before will also get some good fortune this time around.
Brent cracked $80 and climbing still. I dunno if it’s that which is driving this up or had news been leaked of an extension soon to the FPSO. Either way massive potential here, Lancaster producing approx 11,000bopd and not to mention the world class field that is the monster Halifax.
The herd are arriving. People waking up to HUR. 11,000 bopd at around $80 minus OPEX (I think is approx $28? Correct me if wrong) that’s approx $572,000 profit per day or $17,000,000 a month at current prices. News of FPSO extension and a further rise in POO could see this in double figures by year end imo. It’s been a tough ride for long term shareholders here and we need a bit of good fortune.
$100 by year end is a possibility too. If that happens and we stay around the 11,000 bopd x $100 = 1.1 million, minus OPEX. Won’t be long paying off those bonds at that rate. It’s a no brainer here.
https://www.ft.com/content/b27ac2bb-69c9-4e06-94e5-f7373b4de5ba
3.15 now paid
Great work by the BOD. Reducing debt and saving 22 million dollars as a result. What’s not to like.
Now 2.7p to buy, I think this will slowly improve as the news filters out.it’s a positive RND and surely a step in the right direction. Nice to see a much better attempt at running the company than the previous shower.
Hopefully we hold onto this little rise the last few days. DVRG has to be great value at these levels, just need the big seller gone.
Massive news. Congratulations to Gerard and all of his team. Surely has to have a rerate now. It’s long overdue.
Signed. Sitting at 11,950 now
Microsaic up 18% yet DVRG goes red. The mind boggles.
I hope you are right and it doesn’t do it’s usual and trickle back down again. It all looks and sounds rosey and it obviously takes time to build but I still think to get new investors and drive the SP up the only thing that will do it is numbers. It’s just seems to not be on a lot of peoples radar.