TIDMHUR
RNS Number : 6155L
Hurricane Energy PLC
14 January 2021
14 January 2021
Hurricane Energy plc
("Hurricane" or the "Company")
Trading and Operational Update
Hurricane Energy plc, the UK based oil and gas company, provides
a trading and operational update ahead of its results for the year
ended 31 December 2020. This information is unaudited and subject
to further review.
Antony Maris, Chief Executive Officer of Hurricane,
commented:
"Production in line with expectations, a December lifting from
Lancaster, and higher oil prices combined to deliver a $19 million
increase in net free cash at year-end compared to end November
2020. A continued recovery in oil prices would further enhance the
significant value we see in our West of Shetland portfolio. As
previously reported, we are currently engaging with our
stakeholders on a proposed development plan for Lancaster and its
associated funding, in order to maximise the potential value of our
assets."
Trading Update
-- Production for the final four months of 2020 averaged 12,500 bopd, within guidance
-- Production and oil sales for the year ended 31 December 2020
o Production: 5.1 MMbbls (average of 13,900 bopd)
o Oil sales: 5.1 MMbbls across 12 cargoes
-- Operations
o Aoka Mizu FPSO uptime of 98 % during 2020
-- Key financials for the year ended 31 December 2020
o Revenue: $179 million
o Realised annual weighted average oil price of $35/bbl, or a
$7/bbl discount to Dated Brent, including transportation costs
o Discount to Dated Brent of $2/bbl in H2 2020, compared to
$10/bbl H1 2020, as oil price volatility reduced
o Year-end net free cash(1) : $106 million, compared to $87
million at 30 November 2020
Lancaster EPS Production Update
Q3 2020 Q4 2020 Current
Oil Production (MMbbls) 1.25 1.17 N/A
-------- -------- -------
Average Oil Rate (bopd) 13,600 12,700 12,100
-------- -------- -------
Water Cut(2) 26% 25% 25%
-------- -------- -------
Oil production in the fourth quarter of 2020 averaged 12,700
bopd, which was lower than the third quarter primarily due to a
decision to limit production from the 205/21a-6 well to c.12,000
bopd in November 2020 for reservoir evaluation and management
purposes.
Oil production for the period 1 September 2020 to 31 December
2020 averaged 12,500 bopd, within the previously announced guidance
range of 12,000 - 14,000 bopd.
The Lancaster field continues to produce from the 205/21a-6 well
alone, with current production of c. 12,100 bopd on artificial lift
and a water cut of c.25%.
The 19(th) cargo of Lancaster oil was lifted at the end of
December 2020.
(1) Unrestricted cash and cash equivalents, plus current
financial trade and other receivables, current oil price
derivatives, less current financial trade and other payables.
(2) Expressed as total water produced divided by total fluid
(oil and water) production.
-ends-
Contacts:
Hurricane Energy plc
Antony Maris, Chief Executive Officer +44 (0)1483 862
Philip Corbett, Head of Investor Relations 820
Stifel Nicolaus Europe Limited
Nominated Adviser & Corporate Broker
Callum Stewart / Ashton Clanfield +44 (0)20 7710 7600
Vigo Communications
Public Relations
Patrick d'Ancona / Ben Simons
hurricane@vigocomms.com +44 (0)20 7390 0230
About Hurricane
Hurricane was established to discover, appraise and develop
hydrocarbon resources associated with naturally fractured basement
reservoirs. The Company's acreage is concentrated on the Rona
Ridge, in the West of Shetland region of the UK Continental
Shelf.
The Lancaster field (100% owned by Hurricane) is the UK's first
producing basement field. Hurricane is pursuing a phased
development of Lancaster, starting with an Early Production System
consisting of two wells tied-back to the Aoka Mizu FPSO.
Hydrocarbons were introduced to the FPSO system on 11 May 2019 and
the first oil milestone was achieved on 4 June 2019.
In September 2018, Spirit Energy farmed-in to 50% of the Lincoln
and Warwick assets, committing to a phased work programme targeting
sanction of an initial stage of full field development.
Visit Hurricane's website at www.hurricaneenergy.com
Glossary
bbl Barrel
bopd Barrels of oil per day
===========================================
FPSO Floating production storage and offloading
vessel
===========================================
MMbbls Million barrels
===========================================
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END
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