HUR mid-year RNS
https://www.hurricaneenergy.com/communi ... ws-serviceor
https://otp.tools.investis.com/clients/ ... id=1189009extract below, but go and read the full thing online as it has plenty more detail if you are that way inclined.
*****************************************
Half-year Results 2018 Hurricane Energy plc, the UK based oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, is pleased to provide its 2018 interim report and half-year results for the period ended 30 June 2018.
Dr Robert Trice, Chief Executive of Hurricane, commented:
"During the first half of 2018, Hurricane has been focussed on the Lancaster Early Production System (EPS) development. I am delighted to report that operations have progressed to plan and within budget, allowing us to reiterate our first oil guidance of H1 2019.
The two production wells have been completed, the turret mooring system (TMS), subsea umbilical, risers and flowlines (SURF) have been installed at the field, and the upgrade and life extension of the Aoka Mizu FPSO is in its final stages in Dubai. Sea trials for the Aoka Mizu are due to commence by the end of September, with sailaway to follow shortly thereafter.
At 30 June 2018, the Company had $210.1 million in cash and liquid investments, of which $178.6 million was unrestricted. With the well completion, TMS installation and SURF installation phases complete, we remain confident in becoming cash generative based on existing funds. I'd like to acknowledge the outstanding contributions of all our staff and contractors, and our Tier 1 contractors: Bluewater Energy Services, TechnipFMC, Petrofac and Transocean, in delivering the operational progress that has allowed us to reach this position.
As we noted in our 2017 Annual Report, the task in front of us is to de-risk and monetise the substantial contingent and prospective resources across all of our assets. The recently announced farm-in by Spirit Energy (post period-end) to the Greater Warwick Area (GWA) is a first step on this path. The transaction accelerates the appraisal and initial development of the GWA and frees up cash flow from the Lancaster EPS to further appraise and develop the Greater Lancaster Area (GLA) and Whirlwind. We are delighted to have agreed a development strategy with a like-minded company which brings significant operating and financial capacity, together with experience in fractured basement reservoirs.
Following this transaction, Hurricane's outlook for 2019 now includes three GWA wells in addition to first oil in H1 from the Lancaster EPS. The next steps on the GLA remain subject to data obtained from the EPS. However, we believe that we will be able to undertake a drilling campaign on the GLA in 2020/21, ahead of planning for further development. We are entering a very exciting time for the Company and its shareholders. I look forward to first revenues and continued appraisal and development of our significant Rona Ridge resource base next year."
2018 Interim results summaryFinancial results
· The Group's loss after tax for the first half of 2018 was $75.1 million (H1 2017: $4.2 million), including a non-cash fair value loss on the embedded derivative element of the convertible bond of $70.2 million
· Operating expenses for the period were $4.7 million (H1 2017: $6.0 million)
· As at 30 June 2018, the Group had cash, cash equivalents and liquid investments of $210.1 million (31 December 2017: $360.1 million). This includes $39.0 million of liquid investments held in term deposits which mature within 12 months and $31.5 million held in escrow accounts
· The net decrease in cash, cash equivalents and liquid investments in the period was $149.9 million (including the effects of foreign exchange rate changes), the majority of which was related to investment in the ongoing development of the Lancaster EPS, with net cash outflow from operating activities of $2.7 million
Operational and corporate developments/outlook
· Lancaster EPS first oil guidance maintained at H1 2019
· Significant Lancaster EPS development hurdles achieved, including:
o Delivery of TMS and SURF
o Completion of the two production wells
o Conclusion of the offshore installation programme which included installation of TMS and SURF
o Final stages of Aoka Mizu life extension and upgrade works reached in Dubai, with sea trials to commence by the end of September and sailaway anticipated shortly thereafter
· Spirit Energy farm-in to GWA completed
o Agreed five-phase work programme targeting development with 500 million barrels of reserves, significantly accelerating development of the GWA
o Up to $387 million in carry
o Hurricane fully carried on first phase of up to $180.6 million, including the drilling of three wells on the GWA in 2019
· Transocean Leader rig contracted for the three 2019 GWA wells, to begin in Q1