20th Sep 2018 09:25
LONDON (Alliance News) - Hurricane Energy PLC on Thursday said its loss widened sharply in the first half of 2018 as it expects first production from the greater Warwick area in the first half of 2019.
The oil & gas company said its pretax loss widened significantly to USD75.1 million in the first six months of 2018 compared to USD4.2 million reported for the same period a year ago. This includes a non-cash fair value loss on the embedded derivative element of the convertible bond of USD70.2 million.
Excluding the fair value loss, the loss for the period was USD4.9 million.
During the period, the company said it completed construction and fabrication activities on the Aoka Mizu FPSO, and on the turret mooring system and subsea umbilical, risers and flowlines for the Lancaster Early Production System development.
Hurricane Energy said it expects to start sea trials by the end of September with sailaway anticipated to follow shortly thereafter.
Post the period end, the company said Spirit Energy had farmed-in to the greater Warwick area.
The greater Warwick area comprises the Lincoln and Warwick fields located on UK Continental Shelf licences P1368 South and P2294
The move has significantly accelerated the development of the field, as Spirit Energy will fund 100%, up to a maximum of USD180.6 million, of a three well 2019 drilling programme.
Hurricane will remain field operator until commencement of the full field development workstreams, at which point operatorship will transfer to Spirit Energy, subject to regulatory approval.
"During the first half of 2018, Hurricane has been focussed on the Lancaster early production system development," said Chief Executive Robert Trice.
"I am delighted to report that operations have progressed to plan and within budget, allowing us to reiterate our first oil guidance for the first-half of 2019," added Trice.
Shares in Hurricane Energy were trading 1.9% higher on Thursday at 54.59 pence each.
Related Shares:
HUR.L