The clear positives.....12 Dec 2020 13:30
From Hur RNS update....11/9/20
“ Lancaster EPS production averaged 14,600 bopd for both H1 2020 and the year to date ended August 2020. Prior to the recent scheduled shutdown, field production of c.15,000 bopd was from the 205/21a-6 well alone on natural flow, with the 205/21a-7z well currently shut in to manage reservoir voidage and pressure decline.
Net free cash† of $106.2 million at 30 June 2020 (31 December 2019: $133.6 million).
· Net debt† of $123.8 million at 30 June 2020 (31 December 2019: $96.4 million)
· While no drilling is anticipated on the GWA licence during 2021, Hurricane will continue to work with the GWA stakeholders on possible pathways towards development for the Lincoln discovery.
Chairman commented... “It is nonetheless disappointing that the Technical Review has so far resulted in significant reductions in reserves and resources. On a more optimistic note, initial studies suggest water injection could partially mitigate the reserves downgrade, and onlapping sandstones at Lancaster could represent material upside potential.
The Board is enormously grateful to Beverley Smith for leading the Technical Review during a period of considerable change for the Company. We are also most fortunate that stewardship of the Company is now passing to Antony Maris, our new Chief Executive Officer, who has significant experience of basement reservoir developments and will provide strong leadership to the refreshed management team."
New CEO Antony Marris commented
Antony Maris, Chief Executive Officer Designate of Hurricane, commented:
"Through hard work and dedication, the Hurricane team developed the Lancaster project safely, on time and on budget, and has now successfully operated the Lancaster EPS for 16 months. This capability is a core strength of the business, and I am delighted to be joining this accomplished operating team.
Following the uncertainty of recent months, as the significance of the EPS reservoir performance has become clearer, we must now focus on extracting value from Lancaster and our other discoveries, while optimising the use of our significant installed infrastructure West of Shetland. In particular, the Technical Review has identified upside within sandstone reservoirs on the flanks of the Lancaster field, with the potential for volumes of recoverable oil which are significant in a UKCS context. Furthermore, together with Spirit, we are working towards consideration of a viable development plan for the Lincoln field.
Our near-term priority is further technical work to refine an activity plan for Lancaster, which we expect to be finalised by the end of this year and executed in 2021, with an overarching focus on capital discipline. We will be engaging with all our key stakeholders regarding our forward work programme and financing arrangements and updating the market on these efforts in due course."
Negatives we all aware of and one particular foul mouthed poster Biglam abused most
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