Hurricane reports P6 production after maintenance shutdown

The AIM-traded firm said water produced from the well totalled 58,000 barrels in the month, with the average water cut coming in at 28%.

Well-gauge pressure was reported at 1,646 pounds per square inch absolute (psia).

As it had previously announced, Hurricane said the Aoka Mizu underwent its scheduled annual maintenance shutdown during the month, with production resuming on 27 July.

Immediately prior to the shutdown in early July, the P6 well was producing at 10,900 barrels of oil per day, with an associated water cut of 32%.

As at 14 August, Lancaster was producing 11,500 bopd from the P6 well alone, with an associated water cut of 29%.

“Production and water cut are expected to reach previous levels seen prior to the shutdown, and a further update will be given in the company's next monthly production release,” the board said in its statement.

The 24th cargo of Lancaster oil was scheduled to be lifted in late August.

On the financial front, as at 31 July the company had net free cash of $122m (£88m), compared to the last reported figure of $134m on 30 June.

There were no liftings of Lancaster crude in July, and as such no revenue was received during the month.

“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 directors added.

“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.

“As such, not all of the net free cash would be available for repayment of the convertible bonds at their maturity in July 2022.”

At 1124 BST, shares in Hurricane Energy were up 1.17% at 2.33p.