Hurricane To Carry Out Planned Shutdown Of Lancaster Following Latest Cargo Lift


© Supplied by Hurricane EnergyHurricane shutdown Lancaster

The Aoka Mizu FPSO, which serves the Lancaster field.

North Sea operator Hurricane Energy (LON:HUR) is to carry out a planned shutdown of its flagship Lancaster field next month.

It follows the latest lifting of oil from the Aoka Mizu floating production offloading and storage vessel (FPSO).

Oil production during the month totalled 258 thousand barrels (Mbbls) and, as of August 9, Lancaster was producing around 8,400 barrels of oil per day (bopd) from the P6 well alone.

The 30th cargo of Lancaster oil, totalling approximately 534 Mbbls, was lifted on July 24.

It was priced by reference to the average of the last five days of July’s dated Brent quotes, being $111 a barrel, resulting in net revenue of $60 million.

Having cleared its latest cargo, Hurricane will now carry out its planned annual shutdown during September.

The next round of oil will be lifted from the FPSO in October.

As announced in July, Hurricane  repaid in full its outstanding $78 million, 7.5% convertible bonds, as well as $1.5m of accrued interest.

It means the troubled operator is now debt free.

As of July 31, it had net free cash of $89m.

Hurricane is currently mulling over an M&A deal or a potential $250m boost to the West of Shetland asset.

Now debt-free, the revitalised operator is looking to “identify how best to optimise capital allocation”, the board told investors at its AGM recently.

A potential new Lancaster producer – the P8 well – would add incremental reserves of 3-5 million barrels, with capital expenditure of $80-90m subject to the rig market, Hurricane told the AGM.

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