16 Aug 2021 07:00
16 August 2021
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 July 2021.
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 July 2021.
July 2021 Lancaster Field Data
| P6 | P7z(1) |
Oil produced during the month (Mbbls) | 148 | - |
Average oil rate (bopd) | 4,781 | - |
Water produced during the month (Mbbls) | 58 | - |
Average water cut(2) | 28% | - |
Well gauge pressure (psia)(3) | 1,646 | - |
1. The 205/21a-7z ("P7z") well was not on production during July 2021
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 previously announced, the Aoka Mizu underwent its scheduled annual maintenance shutdown during the month, with production resuming on 27 July 2021. Immediately prior to the shutdown in early July 2021, the P6 well was producing at 10,900 bopd with an associated water cut of 32%.
As of 14 August 2021, Lancaster was producing 11,500 bopd from the P6 well alone with an associated water cut of 29%. Production and water cut are expected to reach previous levels seen prior to the shutdown, and a further update will be given in the Company's next monthly production release.
The 24th cargo of Lancaster oil is scheduled to be lifted in late August 2021.
Financial Update
As of 31 July 2021, the Company had net free cash(4) of $122 million, compared to the last reported figure of $134 million as of 30 June 2021. There we no liftings of Lancaster crude in July and as such no revenue was received during the month.
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. As such, not all of the net free cash would be available for repayment of the 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
| +44 (0)20 7710 7600 |
Investec Bank plc Joint Corporate Broker Chris Sim / Rahul Sharma
| +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 |
Mbbls | Thousand barrels |
psia | pounds per square inch absolute |
Inside Information
This announcement does not contain inside information.