WEST of Shetland-focused Hurricane Energy has cut a second money-saving deal in quick succession after facing challenges amid the downturn triggered by the pandemic.
The company announced that it had bought $28.5m bonds for an outlay of $27.3m. The purchase of the bonds from Stifel Nicolaus Europe investment bank will lead to a net saving in debt repayment and interest charges of U.S.$2.8 million.
On Wednesday Hurricane said it had repurchased $15m bonds for $14m, generating a net saving of U.S.$1.8m.
Chief executive Antony Maris said yesterday: “The net savings from the Bond repurchases over the past week have been of significant benefit to the Company.”
The purchases leave $108.5m bonds outstanding. These are due for repayment next year.
Surrey-based Hurricane generated excitement by making finds in a relatively under-explored layer of rock off Shetland. The company brought the Lancaster discovery into production in 2019. After suffering problems with a well on Lancaster, Hurricane reduced estimates of the amount of oil contained in the find and others it had made.
Hurricane's revenues fell after the coronavirus crisis sent oil prices plunging.
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.
The outlook has improved for Surrey-based Hurricane amid the increase in oil prices in recent months. This has been fuelled by hopes that the world economy is set on the road to recovery following the rollout of coronavirus vaccines.
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Brent crude sold for $74.96 per barrel yesterday afternoon, up $0.54/bbl on the day. The price fell to an 18-year low of less than $20/bbl in April last year.
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