Hurricane's net cash grows as oil prices rise

Hurricane Energy said in an update on Wednesday that as at 17 April, the Lancaster Field was producing around 9,150 barrels of oil per day from the P6 well alone, with an associated water cut of 43%.

The AIM-traded firm said total oil produced at Lancaster in March was 282,000 barrels, with its average oil rate coming in at 9,085 barrels per day.

Water produced in the month totalled 204,000 barrels, making for an average water cut of 42%.

The well gauge pressure at Lancaster’s P6 well was an absolute pressure (psia) of 1,585.

Hurricane said the 28th cargo of Lancaster oil, totalling about 524,000 barrels, was lifted on 22 March.

The cargo was priced by reference to the average of the last five days of March's dated Brent quotes, being $116 per barrel, resulting in net revenue of $60.5m.

It said the next cargo was expected to be lifted in late May.

On the financial front, Hurricane said that as at 31 March it had net free cash of $106m, compared to its last reported balance of $71m on 28 February.

During the month, there was a net movement of $9.4m from free cash into restricted funds, following the agreement of the Aoka Mizu FPSO Bareboat Charter extension on 25 March.

A total of $78.5m of convertible bonds remained outstanding, meanwhile, and were due in July.

“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,” the board said in its statement.

“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.”

At 1231 BST, shares in Hurricane Energy were up 1.01% at 10.59p.