20 Apr 2022 07:00
20 April 2022
Hurricane Energy plc
("Hurricane" or the "Company")
Operational and Financial Update
Hurricane Energy plc, the UK based oil and gas company, provides an update on Lancaster field operations and net free cash balances as of 31 March 2022.
Lancaster Field Operations Update
The following table details production volumes, water cut and minimum flowing bottom hole pressure for the 205/21a-6 ("P6") well during March 2022.
March 2022 Lancaster Field Data
P6 | P7z(1) | |
Oil produced during the month (Mbbls) | 282 | - |
Average oil rate (bopd) | 9,085 | - |
Water produced during the month (Mbbls) | 204 | - |
Average water cut(2) | 42% | - |
Well gauge pressure (psia)(3) | 1,585 | - |
1. The 205/21a-7z ("P7z") well was not on production during March 2022
2. Expressed as total water produced divided by total fluid (oil and water) production
3. Pressure reported is the monthly minimum from well downhole gauge
As of 17 April 2022, Lancaster was producing c.9,150 bopd from the P6 well alone with an associated water cut of c.43%.
The 28th cargo of Lancaster oil, totalling approximately 524 Mbbls, was lifted on 22 March 2022. This cargo was priced by reference to the average of the last five days of March's Dated Brent quotes, being $116/bbl, resulting in net revenue of $60.5 million. The next cargo is anticipated to be lifted in late May 2022.
Financial Update
As of 31 March 2022, the Company had net free cash(4) of $106 million compared to the last reported balance of $71 million as of 28 February 2022. During the month, there was a net movement of $9.4 million from free cash into restricted funds following the agreement of the Aoka Mizu FPSO Bareboat Charter extension on 25 March. $78.5 million of Convertible Bonds remain outstanding and are due in July 2022.
The Company believes that net free cash provides a useful measure of liquidity after settling all its immediate creditors and accruals and recovering amounts due and accrued from joint operation activities, outstanding amounts from crude oil sales and after settling any other financial trade payables or receivables. It should be noted that the net free cash is calculated as at the balance sheet date and does not take into account future liabilities that the Company is already committed to but have not yet been accrued. As such, not all of the net free cash would be available for repayment of the remaining outstanding Convertible Bonds at their maturity in July 2022.
4. Unrestricted cash and cash equivalents, plus current financial trade and other receivables, current oil price derivatives, less current financial trade and other payables.
-ends-
Contacts:
Hurricane Energy plc Antony Maris, Chief Executive Officer communications@hurricaneenergy.com
| +44 (0)1483 862820 |
Stifel Nicolaus Europe Limited Nominated Adviser & Joint Corporate Broker Callum Stewart / Jason Grossman
| +44 (0)20 7710 7600 |
Investec Bank plc Joint Corporate Broker Chris Sim / Jarrett Silver / Charles Craven | +44 (0)20 7597 5970 |
Vigo Consulting Public Relations Patrick d'Ancona / Ben Simons hurricane@vigoconsulting.com
| +44 (0)20 7390 0230 |
About Hurricane
Hurricane has a 100% interest in and operates the Lancaster field, the UK's first field to produce from a fractured basement reservoir.
Hurricane also has a 50% interest in the Greater Warwick Area licence, which contains the Lincoln and Warwick assets.
Visit Hurricane's website at www.hurricaneenergy.com
Glossary
bopd | Barrels of oil per day |
FPSO | Floating production storage and offloading vessel |
Mbbls | Thousand barrels |
psia | pounds per square inch absolute |
Inside Information
This announcement does not contain inside information.