18:00 Wed 29 Jan 2020
Hurricane Energy PLC - Trading and Operational Update
("Hurricane" or the "Company")
Trading and Operational Update
Highlights
· Continued strong production performance from the Lancaster Early Production System ("Lancaster EPS")
o Well productivity above pre-start up expectations
o Facility availability above 90%
· Commencing Lancaster EPS quarterly production reporting
o Q3 2019: 15,400 barrels of oil per day - significantly above guidance of 9,000 barrels of oil per day on good facilities availability
o Q4 2019: 11,800 barrels of oil per day - exceeding updated guidance of 11,000 barrels of oil per day despite ongoing commissioning activities and commencement of individual well tests
· FY2019 Production and oil sales
o Production: 3.0 million barrels of oil (average of 12,900 barrels of oil per day from introduction of hydrocarbons on
o Oil sales: 2.9 million barrels of oil across seven cargoes
· Financials for the year ended
o Revenue:
o Year-end unrestricted cash:
o Year-end net payables balance:
· 2020 update
o Eighth lifting successfully completed on
o Individual well flow test on 205/21a-6 well ("6 Well") due to complete before month-end, following which two well production is expected to resume at 20,000 barrels of oil per day (subject to facilities availability)
o Additional
Lancaster EPS Production Update
Having completed two full calendar quarters of production, Hurricane now plans to provide quarterly production reports going forward. Updates will be made in the first month of each calendar quarter. The first such update is provided below.
|
|
Q3 2019 |
Q4 2019 |
FY 2019 |
Oil Production |
Million barrels |
1.4 |
1.1 |
3.0 |
Oil Rate |
Barrels of oil per day |
15,400 |
11,800 |
12,900 |
Average Water Cut |
% total fluids |
6.2% |
10.3% |
7.4% |
As described in the Company's 2019 interim results on
Hurricane has been carrying out these individual flow tests to establish individual well performance and the optimum combined well flowrate in light of the immediate and strong pressure communication between the wells. During Q4, the 205/21a-7Z well ("7Z Well") was produced on its own for 25 days, including periods at relatively low rates as part of the reservoir evaluation process. This resulted in lower oil production and a higher average water cut than observed during Q3.
The
Hurricane intends to complete its individual well flow test on the 6 Well before the end of this month and thereafter intends to flow both the 6 Well and the 7Z Well at a combined rate of approximately 20,000 barrels of oil per day. The Company intends to discuss the data acquired from the separate well tests and the subsequent combined flow at the Capital Markets Day on
Future Data Provision
As production from the Lancaster EPS continues, the Company is working towards gathering the data it believes will enable it to present a comprehensive picture of the
2019 Financial Results
Hurricane successfully completed its seventh lifting from the Aoka Mizu FPSO on
Year-end unrestricted cash was
The Company expects to report its full financial results for the year ended
2020 Update
As announced on
All proposed activity remains subject to regulatory consent and, where related to joint activity with
Dr Robert Trice, Chief Executive of Hurricane, commented:
"The start-up of the Lancaster EPS has gone very well, with 2019 production exceeding the guidance that we provided when we announced first oil. We've also had a strong start to 2020 with the 6 Well test continuing on
"Work continues on the analysis of the results of the 2019 drilling campaign, planning of future wells, and obtaining the relevant approvals. I look forward to presenting on what we have learnt and what we expect from this reservoir at our Capital Markets Day in March.
"We note the recent weakness in the Company's share price and I can confirm that we are not aware of any subsurface, operational or commercial reasons that would have caused such decline. The production performance of the Lancaster EPS wells is above our base case expectations and we remain on target to provide an update at the Capital Markets Day in March whilst continuing to make progress towards the next operational steps for our portfolio.
"Hurricane remains focussed on delivering operational progress, on budget and on schedule, and, in so doing, delivering returns to shareholders. We look forward to continuing to update the market with quarterly production figures, and will announce any material variations to expectations as required."
Contacts:
Dr
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+44 (0)1483 862 820 |
Nominated Adviser & Joint Corporate Broker
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+44 (0)20 7710 7600 |
Joint Corporate Broker
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+44 (0)20 7425 8000 |
Public Relations Patrick d'Ancona / |
+44 (0)20 7390 0230 |
About Hurricane
Hurricane was established to discover, appraise and develop hydrocarbon resources associated with naturally fractured basement reservoirs. The Company's acreage is concentrated on the
The
In
Glossary
FPSO |
Floating production storage and offloading vessel |
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Inside Information
This announcement does not contain inside information.
Competent Person
The technical information in this release has been reviewed by Dr
Standard
Resource estimates contained in this announcement have been prepared in accordance with the Petroleum Resource Management System guidelines endorsed by the
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