6th Aug 2020 12:19
(Alliance News) - Shares in Hurricane Energy PLC fell on Thursday, after the oil and gas company said it will take a material downgrade on its estimated resources across its West of Shetland projects.
The stock was down 16% at 5.15 pence each in London at midday. It has lost 85% of its value so far in 2020.
Hurricane Energy said that initial results of an ongoing technical review found that the oil water contact in Lancaster field was shallower than expected.
"Consequently, the company believes there is a risk of a material downgrade to estimated reserves attributable to the Lancaster Early Production System, and that there will also be a material downgrade to estimated contingent resources across the West of Shetland portfolio. This assessment does not take into account any production enhancement options for the Lancaster field which are currently under evaluation," Hurricane said.
The technical review is expected on or before the company's interim 2020 results on September 11, at which point the company expects to be in a position to notify management estimates of reserves and resources for the Lancaster field.
Hurricane Energy also said that the Aoka Mizu floating production system underwent a controlled shutdown to undertake an inspection.
The inspection identified necessary repairs which have been ongoing in recent days, with production expected to restart imminently, the company added.
Prior to the shutdown, the field was producing at a gross rate of 17,000 barrels of oil per day.
By Tapan Panchal; [email protected]
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