Canaccord raises target price on Hurricane Energy

Canaccord said the departure of chief executive Robert Trice paved the way for a fresh look at the technical understanding of the company's basement play, with a focus on getting the best out of its current Lancaster development.

The Canadian broker said Hurricane was "a long way" from its halcyon days of July 2019, when the early data indicated that Lancaster was performing "extremely well" as the news since then has been variable, but "mostly gloomy".

Canaccord also stated the looming issue remained the company's $230m of convertible bonds, which mature in July 2022.

"We anticipate that Hurricane will not be in a position to repay fully this debt," said Canaccord. "While a refinancing of the convertible looks required, it is clear that balance sheet risk could increase significantly."

The analysts said the focus now was on "the tricky process" of maximising cash flow after financial flexibility has been diminished through production that has effectively halved.

While Canaccord acknowledged that costs were "essentially unchanged", it said Hurricane has also been impacted as oil prices have been hit of late.