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Hurricane Energy PLC on Thursday provided an update on its Lancaster field operations, boasting production continued to generate significant positive cashflow.
The UK-based oil and gas company said, at May 31, it had net free cash of $139 million, up from $92 million at the end of April. It also reported $78.5 million in outstanding convertible bonds, which are due to be repaid in July.
Hurricane said that following the repayment, assuming that oil prices remain at over $90 per barrel, by the end of July the company expects to be holding net free cash of $75 million.
This was aided by the company's recent production at its Lancaster field. In May, its P6 well produced 259,000 barrels at an average oil rate of 8,266 barrels of oil per day. Its P7z well produced 4,000 barrels in the month, at an average oil rate of 203 barrels of oil per day.
The P6 well had been impacted by a two-day testing period on the P7z well. The testing had temporarily reduced the flow rate from the P6 well, Hurricane explained, thus reducing overall average production.
The 29th cargo of Lancaster oil was lifted on May 24. It totalled around 547,000 barrels of oil at a price of $110 per barrel and resulted in revenue of $59.5 million. The next cargo is expected to be lifted in late July.
Chief Executive Antony Maris said: ‘Hurricane's production continues to generate significant positive cashflow enabling us to look beyond bond repayment with a strong cash position and balance sheet. Management and the board are working hard to assess and evaluate possible organic and inorganic investment opportunities.’
Shares in Hurricane Energy were up 4.5% at 7.73 pence on Thursday in London.
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