1st May 2015 10:03
LONDON (Alliance News) - Hurricane Energy PLC Friday said talks with potential partners are ongoing since its successful drilling and testing operations at its appraisal well in Lancaster, north west England last year, and posted a narrowed pretax loss for 2014.
The UK-based oil and gas company posted a pretax loss of GBP9.0 million for 2014, narrowed from a pretax loss of GBP21.3 million a year before, which the company attributed to a reduction in interest costs associated with convertible loan notes, and no further losses on its derivative financial instruments in 2014.
Operating expenses rose to GBP8.6 million from GBP5.3 million a year before, mostly due to rise in share-based payments. It is not yet revenue producing.
Hurricane listed on AIM in February last year, raising GBP17 million in its initial public offering.
Its most advanced asset is its discovery in Lancaster, and during the second quarter of 2014 it drilled and testing a 1 kilometre horizontal appraisal well at the site. It achieved a sustainable natural flow rate of 5,300 stock tank barrels per day, and a flow rate using artificial lift of 9,800 STB/d from its well production test at Lancaster.
The company said there has been "considerable industry interest" in both the Lancaster field and its other assets, and it is currently in talks with a number of potential partners.
Whilst the sharp fall in the oil price in the second half of 2014 is "clearly affecting the entire industry", Hurricane said it believes the success of its appraisal drilling operation and the significant volumes of oil resources in place demonstrate that it remains attractive in the long term.
"The drilling and testing of the Lancaster appraisal well - a key milestone in demonstrating the commercial viability of the oil discovery - was a great success. This was a major step forward in further de-risking Hurricane's substantial oil resources," said Chief Executive Robert Trice in a statement.
Shares in Hurricane are trading up 3.5% at 15.79 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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