Berenberg stays at buy on Hurricane Energy after Warwick Deep

Analysts at Berenberg reiterated their 'buy' recommendation for shares of Hurricane Energy despite the disappointing the results of its Warwick Deep well on Monday, arguing that what most mattered for the oil explorer were its assets at the Lancaster field.

"The focus for us remains on Lancaster, where a pilot production is ongoing following a start-up in early June. Results from this project, particularly reservoir pressure levels, will be crucial for determining the overall productivity potential of Hurricane's assets," the German broker said in a reserach note sent to clients.

In Berenberg's opinion, even if Warwick was written off, which it considered to be the "downside" case, the resource base Hurricane was after was large enough to justify "significant upside".

The broker was expecting an update on the early production system at Lancaster starting from the company's Capital Markets Day on 11 July, as well as more information on the results and implications of the Warwick Deep well.

Berenbert kept its target price on Hurricane share at 100.0p.