11 Jun 2018 10:57
Edison Investment Research Limited Edison Investment Research Limited: Edison issues outlook on Hurricane Energy (HUR) 11-Jun-2018 / 10:57 GMT/BST London, UK, 11 June 2018 Edison issues outlook on Hurricane Energy (HUR) The development of Hurricane's Lancaster early production system (EPS) remains on track for H119 first oil. We estimate a 1 January 2018 point-forward IRR of 63% for the EPS phase based on current commodity price forecasts. We use the EIA's short-term oil forecast with Brent at $66/bbl for 2019 and long-term $70/bbl (from 2022). We believe the market is fully valuing a 10-year Lancaster EPS phase (34.7p/share net of debt), a project that has the potential to significantly de-risk our RENAV of 81.0p/share (increased from 78.4p/share). Our RENAV includes a risked value for Lancaster full field development and two mid-sized field developments (250mmbo) at Lincoln and Halifax. Our RENAV stands at 81.0p/share (up 3% from 78.4p/share) as we mark to market for EIA 2019 oil price assumptions and increase our EPS commercial chance of success from 90% to 100%. We continue to include 10% capex cost contingency, which we expect to release closer to first oil.Click here to view the full report. All reports published by Edison are available to download free of charge from its websitewww.edisoninvestmentresearch.com About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information please contact Edison: Sanjeev Bahl, +44 (0)20 3077 5742Carlos Gomes, +44 (0)20 3077 5700Oilandgas@edisongroup.comLearn more at www.edisongroup.com and connect with Edison on:LinkedIn https://www.linkedin.com/company/edison-investment-research Twitter www.twitter.com/Edison_Inv_ResYouTube www.youtube.com/edisonitv Dissemination of a CORPORATE NEWS, transmitted by EQS Group.The issuer is solely responsible for the content of this announcement. |
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