Hurricane Energy plc announced stronger net free cash position during the second quarter of 2021 than Q1 from its operations in the Lancaster field on the Rona Ridge, West of Shetland.
FINANCES
As of 30 June 2021, the company had net free cash of $134 million [£97m] compared with $127m at the end of March 2021.
Hurricane reported revenue of $69m from two liftings of Lancaster crude in the second quarter resulting in an average realised price of $66/bbl, compared with an average Brent price of $69/bbl for the same period.
Operating and general and administrative costs were $36m with net cash capital expenditure of $1m.
Convertible bond coupon payments were $4m.
Net movement to restricted cash was $12 million (including additional decommissioning security).
Hurricane recorded an increase in net working capital of $9m, the majority of which is accruals relating to the Lincoln-14 well plug and abandonment activity.
| P6 | P7z(1) | |
| Oil produced during the month (Mbbls) | 319 | – |
| Average oil rate (bopd) | 10,640 | – |
| Water produced during the month (Mbbls) | 144 | – |
| Average water cut(2) | 31% | – |
| Well gauge pressure (psia)(3) | 1,647 | – |
divided by total fluid (oil and water) production. 3. the monthly minimum from well downhole gauge
PRODUCTION
The electric submersible pump (ESP) in the P6 well was restarted in June after tripping earlier in the year leading to a temporary reduction to Lancaster production.
In mid-June, the 23rd cargo of Lancaster oil, totalling some 530 Mbbls, was lifted.
The Aoka Mizu FPSO is currently undergoing its scheduled annual shutdown, which is expected to last for approximately two weeks.
Immediately before the shutdown in early July 2021, the field was producing from the P6 well alone at 10,900 bopd with an associated water cut of 32%.
COMMITMENTS
“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,” said Hurricane in a statement.
“As such, not all of the net free cash would be available for repayment of the convertible bonds at their maturity in July 2022.”