Hurricane Energy PLC Operational and Financial Update
RNS Number : 8044V
Hurricane Energy PLC
19 April 2021
19 April 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 production and net free cash balances
at 31 March 2021.
Lancaster EPS Production Update
Q4 2020 Q1 2021
Oil Production (MMbbls) 1.17 1.01
Average Oil Rate (bopd) 12,700 11,200
Water Cut(1) 25% 25%
1. Expressed as total water produced divided by total fluid (oil and water) production
Oil production in the first quarter of 2021 averaged 11,200
bopd, which was lower than the fourth quarter of 2020 due to:
-- a decision, as previously announced, to reduce production
from the 205/21a-6 well (the "P6 well") in November 2020 for
reservoir management purposes, which resulted in a reduced rate of
increase in water cut;
-- natural decline in the period; and
-- a temporary reduction in the production rate in early March
2021, which required an unscheduled well intervention.
Production efficiency during the first quarter of 2021 was 95%,
exceeding the Company's planning assumption of 90%. The first
quarter outturn compared to a production efficiency of 99% in the
fourth quarter of 2020, with the sequential decrease explained by
the March 2021 well intervention described above.
As part of the Company's periodic well testing programme for
reservoir management purposes, the Lancaster field is currently
producing from both the P6 and 205/21a-7z wells. Immediately prior
to the testing programme, the field was producing from the P6 well
alone at a rate of c.11,600 bopd on artificial lift via electric
submersible pump, with an associated water cut of 28%.
The 21st cargo of Lancaster oil was lifted on 17 March 2021. The
22nd cargo has been sold and is due for lifting between end April
and early May 2021.
At 31 March 2021, the Company had net free cash(1) of $127
million, compared to $106 million at 31 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.
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
bopd Barrels of oil per day
FPSO Floating production storage and offloading
MMbbls Million barrels
This announcement does not contain inside information.
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(END) Dow Jones Newswires
April 19, 2021 02:00 ET (06:00 GMT)