Hurricane Energy plc, the UK based oil and gas company, provides an update on Lancaster field operations and net free cash balances as of 28 February 2022.
Lancaster Field Operations Update
The following table details production volumes, water cut and minimum flowing bottom hole pressure for the 205/21a-6
As of 15 March 2022, Lancaster was producing c.9,250 bopd from the P6 well alone with an associated water cut of c.42%.
There was no lifting of Lancaster crude in February. The next cargo is anticipated to be lifted in late March 2022.
Financial Update
As of 28 February 2022, the Company had net free cash(4) of $71 million compared to the last reported balance of $85 million as of 31 January 2022. $78.5 million of Convertible Bonds remain outstanding and due in July 2022.
As previously guided, during February, the Company lodged £5.7 million ($7.7 million) of additional funds as decommissioning security for the Lancaster EPS following a formal request from the Regulator. The amount of funds now held in trust, and classified as restricted cash, is now £33.7 million ($45.9 million).
Also as previously guided, in early March, the Company received $1.4 million of cash rebates relating to R&D tax claims in respect of the 2020 tax year.
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 but have not yet been accrued. As such, not all of the net free cash would be available for repayment of the remaining outstanding Convertible Bonds at their maturity in July 2022.
Notice of results
Hurricane's full-year results for 2021 will be announced on 28 April 2022.
Antony Maris, Chief Executive Officer of Hurricane, commented:
"Through a combination of further strong operational performance at Lancaster and continued high commodity prices, coupled with our ongoing constructive discussions with Bluewater over a charter extension for the Aoka Mizu, we continue to build the platform for Hurricane's future."
