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Hurricane Energy announces 1H19 results

Hurricane Energy announces 1H19 results

 

Hurricane Energy has provided its 2019 interim report and half-year results for the period ended 30 June 2019.

2019 Interim results summary

Financial results

  • The Group recognised revenue for the first time relating to a single cargo of crude oil that was sold in the period. This resulted in the Group recording an operating profit of US$1.2 million (1H18: operating loss of US$4.7 million).
  • The Group recorded a loss after tax for 1H19 of US$21.2 million (1H18: US$75.1 million).This loss includes a non-cash fair value loss on the embedded derivative element of the Convertible Bond of US$23.5 million.
  • As at 30 June 2019, the Group had an unrestricted cash position of US$81.4 million (31 December 2018: $83.0 million).

Operational developments - Greater Lancaster Area

  • Lancaster Early Production System first oil achieved on 4 June 2019, following introduction of hydrocarbons on 11 May 2019.
  • Lancaster has been producing at an average of approximately 14 100 bpd from first oil to latest lifting (completed on 17 September 2019).
  • Hurricane has sold over 1.6 million bbl of oil across four cargoes to date.
  • Overall system availability on the Lancaster Early Production System has exceeded long-term guidance of 85%.

Operational developments - Greater Warwick Area

  • Three well 2019 drilling campaign being carried out in partnership with Spirit Energy using the Transocean Leader semi-submersible rig.
  • 'Lincoln Crestal' well (205/26b-14).
  • - Drilled to a total depth of 1780 m TVDSS, including a 720 m horizontal section of fractured basement reservoir and successfully flow tested.
    - Maximum stable flow rate of c. 9800 stb/d on electrical submersible pumps, 4682 stb/d under natural conditions.
    - Lincoln confirmed to contain light, 43° API oil.

  • 'Warwick Deep' well (205/26b-13Z).
  • - Drilled to a total depth of 1964 m TVDSS, including a 712 m horizontal section of fractured basement reservoir.
    - Initial analysis indicates that the well intersected a poorly connected section of the fracture network - it did not flow at commercial rates, producing a mixture of drilling brine, water, oil and gas,and so was plugged and abandoned.
    - Encountered oil shows, with gas chromatography indicating light oil and a DST oil sample which laboratory measurements indicate to be alight oil of 40°.

Outlook

  • Lancaster Early Production System 2019 full year production guidance of over 2.8 million bbl (approx. 12 500 bpd from first oil).
  • Warwick West, third well in 2019 Greater Warwick Area programme, due to be spudded shortly.
  • Long lead items for Greater Warwick Area 2020 well programme have been ordered, rig contract expected to be signed shortly.
Published: 24-09-2019

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