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8 Jun 2016 07:00
Embargoed: 0700hrs 8 June 2016
Hurricane Energy plc
("Hurricane" or the "Company)
Farmout Update
Hurricane Energy plc, the UK-based oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, provides an update on farmout discussions.
On 9 May 2016 the Company announced the successful completion of a £52.1 million Placing and Subscription, which will enable Hurricane to proceed independently to drill and test both a Pilot Well and a Horizontal Sidetrack Well on the Lancaster field (the "Lancaster 7 Wells") this summer.
The Lancaster 7 Wells - the first of which is expected to spud in July - are designed to refine the Lancaster Contingent Resource range (currently 62 - 456 MMboe) and provide a second future production well.
Accordingly, with funding in place, the Directors of the Company have taken the decision to temporarily suspend current farmout discussions until the drilling, testing and subsequent analysis of the Lancaster 7 Wells has been completed. This will allow the Company to focus on the upcoming drilling campaign, provide new information to help optimally plan the Lancaster field development, and is expected to provide a strengthened position from which the Company may pursue its farmout options.
The Company expects to reopen its data room for farmout discussions, once the results from the Lancaster 7 Wells have been interpreted and integrated with the ongoing development planning.
Dr Robert Trice, CEO of Hurricane, commented:
"This is an exciting time for the Company, following the recent investments made by new and existing supporters of Hurricane earlier this year. We look forward to this summer's drilling campaign and are confident that the additional data obtained will put the Company in a stronger position from which to pursue funding options to progress the Lancaster development."
Contact Details:
Hurricane Energy plc | Dr Robert Trice Chief Executive Officer | +44 (0)1483 862 820 |
Cenkos Securities plc | Nominated Adviser and Broker Derrick Lee/Nick Tulloch/Beth McKiernan | +44 (0)131 220 6939 |
Vigo Communications | Public Relations Patrick d'Ancona/Ben Simons | +44 (0)20 7830 9704 hurricane@vigocomms.com |
About Hurricane
Hurricane is an oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs. The Company's focus is to discover, appraise and develop oil reserves in basement rock. Hurricane has already successfully discovered substantial volumes of oil on the UKCS. The Company has 444-470 mmboe of 2C Contingent Resources and 432-442 mmboe P50 Prospective Resources on acreage it controls 100%.
In 2014, Hurricane drilled and tested an appraisal well on its Lancaster oil field West of Shetland. The highly successful operations demonstrated that the Company could produce commercial quantities of oil from Lancaster. The Company will undertake a further well programme on Lancaster, incorporating a Pilot well and a Horizontal Sidetrack well as part of a continuous drilling programme in the summer of 2016. The Horizontal Sidetrack well is designed to refine the Lancaster Contingent Resource range (currently 62 - 456 mmboe), will provide a second future production well and will provide new information to help optimally plan the Lancaster field development. The Pilot well objectives are to confirm the depth of Oil Water Contact, evaluate the properties of a potential aquifer to establish how supportive it is of production and evaluate the overlying Victory sandstone resource range.
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