10th Jun 2015 10:12
LONDON (Alliance News) - Hurricane Energy PLC Chairman John Hogan Wednesday urged shareholders to be patient while the company continues talks about a farm-out deal for the Lancaster oil discovery that it owns West of Shetland.
Hurricane, which listed on AIM in February last year, is still in talks about finding a partner for the Lancaster field, after saying last month there had been "considerable industry interest" in both the Lancaster field and Hurricane's other assets, and it was talking with a number of potential partners.
"During commercially sensitive farm-out discussions a lack of news-flow can understandably be frustrating for shareholders, but the company must act in their best interests by not compromising ongoing negotiations by making public statements before a definitive conclusion has been reached," Hurricane Chairman John Hogan said in a statement ahead of the company's Annual General Meeting.
"We are confident that these discussions, coupled with the excellent technical progress we have made on Lancaster with our recent work, will provide the foundation for significant value creation for our shareholders and I am looking forward to updating the market further in due course," he added.
"It is very encouraging that we have a development plan for Lancaster that is economically robust at oil prices below those currently prevailing and I therefore expect this will be an attractive project to industry partners," the chairman said.
Hurricane said that as a consequence of the ongoing technical work and farm-out negotiations, its management believes it is in the best interests of the company to defer the commissioning of a revised Competent Person's Report until Hurricane is able to include a definitive plan for a Full Field Development of the Lancaster reservoir whilst including the results of the recent horizontal well.
"This will increase the value and relevance of the Competent Person's Report to the company in general and the Lancaster asset in particular," it said.
Hurricane Energy shares were up 2.4% at 18.17 pence Wednesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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