23rd Sep 2015 08:53
LONDON (Alliance News) - Hurricane Energy PLC Wednesday said its pretax loss narrowed in the first half of 2015 as it continues to develop the Lancaster field and source partners for its assets.
The oil exploration company focused on the UK reported a GBP3.2 million pretax loss in the first six months of 2015, narrowing from the GBP7.3 million loss a year earlier. Hurricane does not currently generate any revenue.
That was the result of operating expenses being slashed to GBP3.1 million from GBP4.9 million and because it booked a GBP55,000 loss on foreign exchange compared to a GBP1.8 million loss a year ago.
At the end of June, Hurricane reported a cash balance of GBP10.1 million, down from GBP13.5 million at the end of December. Both those figures exclude GBP2.3 million that is being held in an escrow account as part of its joint venture projects.
The company's primary focus is developing the Lancaster field offshore the Shetland Islands into production. It is currently refining the reservoir field model, well planning and facility evaluation at the project.
Jefferies International continues to assist Hurricane in conducting a formal farm-out process to attract an industry partner into some or all of the group's assets, including the Lancaster field. Hurricane said it is engaged with a shortlist of interested parties.
In July, the company was awarded two further blocks offshore the Shetland Island under the UK's 28th offshore licensing round conducted by the UK Oil and Gas Authority, part of the Department for Energy and Climate Change. Those licences are on a drill-or-drop commitment.
Alongside the Lancaster field, Hurricane now has stakes in the Typhoon, Whirlwind, Lincoln and Strathmore licence areas, all located in close proximity to one another around the Shetland Islands.
Hurricane shares were down 3.1% to 15.50 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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