Hurricane Energy PLC Stakeholder Engagement & Lancaster Activity Update
RNS Number : 7754Q
Hurricane Energy PLC
02 March 2021
2 March 2021
Hurricane Energy plc
("Hurricane" or the "Company")
Update on Stakeholder Engagement and Lancaster Activity
Hurricane Energy plc, the UK based oil and gas company, provides
an update on the previously announced stakeholder engagement
process and the timing of further activity on the Lancaster
The Company has previously announced that it is engaging with
its stakeholders on a proposed development plan and associated
funding for the Lancaster field. The Company confirms that these
stakeholders include an ad hoc group of convertible noteholders.
Discussions on the Company's forward work programme, strategy,
financing and balance sheet recapitalisation are ongoing.
Lancaster Activity Update
On 18 December 2020, Hurricane outlined contemplated next steps
in the Lancaster development programme, which included a second
production well in 2021 by side-tracking from the existing
205/21a-7z well into the central area of the field.
This proposed side-track is more complex in nature than previous
wells on Lancaster due to the incorporation of an intelligent
completion and the challenges of delivering the well trajectory
from the side-track location. As a result, the Company has
concluded that it will not be possible to drill this well during
the 2021 summer weather window without unacceptable operational and
While no firm decisions have been made, the Company is now
considering various options including:
i. drilling the side-track in 2022 following further planning activity during 2021;
ii. drilling the side-track together with the previously
contemplated water injection well as a combined programme in 2022;
iii. drilling the side-track in 2022 and the water injection well in 2023.
All options for potential further development activity are
subject to factors which are or may be outside the Company's
control which include field performance, prevailing oil prices and
support from relevant stakeholders and counterparties.
Hurricane Energy plc
Antony Maris, Chief Executive Officer
Philip Corbett, Head of Investor Relations +44 (0)1483 862820
Stifel Nicolaus Europe Limited
Nominated Adviser & Joint Corporate Broker
Callum Stewart / Ashton Clanfield +44 (0)20 7710 7600
Investec Bank plc
Joint Corporate Broker
Chris Sim / Rahul Sharma +44 (0)20 7597 5970
Patrick d'Ancona / Ben Simons
email@example.com +44 (0)20 7390 0230
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
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
This announcement contains inside information.
1. Further information on the stakeholder engagement process,
including as to risk of dilution and potentially limited or no
value to existing shareholders, is contained in the Company's
announcements of 18 December 2020 and 14 January 2021.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact firstname.lastname@example.org or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
(END) Dow Jones Newswires
March 02, 2021 02:00 ET (07:00 GMT)