Hurricane Energy plc said it produced 9,500 bopd from the 205/21a-6 (P6) well during January 2022 at the Lancaster field, West of Shetland.
PRODUCTION
The 27th cargo of Lancaster oil, totalling approximately 530 Mbbls, was lifted on 25 January 2022 and priced at $81.4/bbl.
The next cargo is anticipated to be lifted in late March 2022.
| January 2022 Lancaster Field Data | P6 | P7z(1) |
| Oil produced during the month (Mbbls) | 299 | – |
| Average oil rate (bopd) | 9,639 | – |
| Water produced during the month (Mbbls) | 196 | – |
| Average water cut(2) | 40% | – |
| Well gauge pressure (psia)(3) | 1,595 | – |
FINANCES
In a statement, Hurricane added that the Oil and Gas Authority had, as expected, requested that the company lodge additional funds as decommissioning security.
The company, which is in discussions with the regulator over the exact timetable, said that the funds were expected to be up to £5.7 million ($7.7m).
This will take the total amount in trust, and therefore classified as restricted cash, from £28m to £33.7m.
During January, Hurricane received $3.2m of cash rebates relating to R&D tax claims in respect of the 2019 tax year.
An additional $1.3m claim in respect of the 2020 tax year is still under review by HM Revenue & Customs but the company anticipates receiving it later in Q1 2022.
As of 31 January 2022, the company had net free cash of $85 million ($77.3m after taking into account the planned increase in restricted cash) compared with $50m as of 31 December 2021.
Hurricane added that a total of $78.5m of convertible bonds remain outstanding and due in July 2022.