Hurricane Energy shares were up 3.2% to 10.8p in early afternoon trading on Wednesday after the company released the latest update for its Lancaster field operations from March, highlighting a free cash balance of $106 million compared to $71 million at the close of February.
Hurricane Energy said that its Lancaster operation was producing 9,150 barrels of oil per day from its P6 well alone, with an associated water cut of 43%.
The group’s 28th cargo of Lancaster oil was lifted on 22 March and totalled 524,000 barrels.
According to the company, the cargo was priced by reference to the average of the past five days of the dated Brent crude quotes for March at $116 per barrel, with the net revenue reportedly coming in at $60.5 million and the next shipment scheduled for departure in late May this year.
The firm noted a net movement of $9.4 million from free cash into restricted funds, following the energy firm’s agreement of the Aoka Mizu FPSO Bareboat Charter extension on 25 March.
Hurricane Energy mentioned that $78.5 million in Convertible Bonds remained outstanding, and are due in July this year.
The group commented that net free cash provides a helpful measure of liquidity once it has settled its immediate creditors and accruals, alongside recovering amounts due and accrued from joint operation activities and outstanding amounts from crude oil sales.
Hurricane Energy confirmed that the net free cash does not take into account future liabilities which the firm has committed to, but have not yet been accrued, meaning that not all of the net free cash will be available for repayment of the leftover outstanding Convertible Bonds once they reach maturity in July.