WEST of Shetland-focused Hurricane Energy has received a boost after producing more oil than expected last month following a challenging period.
The company said it produced an average 10,420 barrels of oil per day (bopd) from the flagship Lancaster field in October. It had expected production to average 8,500 bopd to 10,000 bopd in the six months from October 1.
The outperformance allowed Hurricane to capitalise on the rise in oil prices that has been fuelled by the recovery in the global economy from the impact of the pandemic.
Hurricane generated $26 million cash from operations in the month.
The company faced big challenges amid the slump in oil prices that was triggered by the fallout from the pandemic. It previously slashed estimates of the size of finds made during a pioneering exploration drive off Shetland.
In June the High Court blocked a proposed debt-for-equity swap that would have left creditors in control of the firm. Directors had said the restructuring was the only realistic option open to the firm.
Hurricane is due to repay $152m bonds in July next year.
It had $99m free cash at the end of October.
The company said it benefitted in October from better than expected uptime on the huge production vessel used on Lancaster. It is in talks with the operator of the vessel about extending the charter beyond June 2022. However, such an extension would have cash flow implications.
Shares in the company closed down 0.13p, at 4.73p, yesterday. The shares sold for around 60p in 2019 after the company started production from Lancaster but tumbled after it suffered production setbacks and fell to a low of 0.66p in May.
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