Hurricane Energy plc said it would soon clear its debts on the back of high oil prices and steady production at its Lancaster field, west of Shetland.
PRODUCTION
As of 16 July 2022, Lancaster was producing c.8,650 bopd from the P6 well alone with an associated water cut of c.46%.
The company said that there was no lifting of Lancaster crude in June. The next cargo is anticipated to be lifted later in July 2022.
| June 2022 Lancaster Field Data | P6 | P7z(1) |
| Oil produced during the month (Mbbls) | 256 | – |
| Average oil rate (bopd) | 8,527 | – |
| Water produced during the month (Mbbls) | 214 | – |
| Average water cut(2) | 46% | – |
| Well gauge pressure (psia)(3) | 1,564 | – |
the 205/21a-6 (P6) well during June 2022 (Hurricane Energy)
FINANCES
As of 30 June 2022, Hurricane had net free cash of $127 million compared with the last reported balance of $139m as of 31 May 2022.
A total of $78.5m convertible bonds remain outstanding and are due to be repaid by 24 July 2022.
Following the repayment, assuming oil prices remain at over $90/bbl, the company said it forecast to hold at the end of July net free cash in excess of $75m.
If oil prices for the July cargo are above $110/bbl, the net free cash forecast increases to be above $85 million.
Hurricane added that once it had repaid the convertible bond, the company intends to reduce the frequency of its production and financial updates to quarterly rather than monthly.
OPPORTUNITIES
“With another steady month of production, we now look beyond repayment of the bonds with a strong cash position and balance sheet,” said chief executive Antony Maris.
“We believe that there are good investment opportunities ahead and the company is well placed to deliver significant shareholder value.”