Hurricane Energy PLC (LON: HUR) have seen their shares spike on Friday morning, as the firm reported changes to its operations to fit with licence requirements.
Hurricane Energy is an AIM listed, UK based exploration and production company.The firm focuses on discoveries in naturally fractured basement reservoirs and are working towards realising the value of the reserves and resources of these discoveries.
Hurricane shares spiked 7.74% to 32p on the announcement. 13/12/19 10:51BST.
Hurricane saw their shares rally in October, after the firm excepted interim expectations which thoroughly impressed shareholders.
At the start of December, the firm saw their shares plummet despite a new recorded discovery.
The firm announced that it had made another discovery at its Warwick West well in the UK North Sea, however further analysis was needed to consider the sustainability of the discoveries.
The Warwick West well, third and final well in the 2019 Greater Warwick Area programme, was spudded September 24 and drilled to 1,879 metres, intersecting a 931 metre horizontal section of a fractured basement reservoir.
Today, shareholders have jumped on the announcement which have left shares in green.
The company said it has obtained an extension for the P1368 licence, which is to the west of the Shetland Islands and contains the Lancaster and Lincoln oil fields. It will relinquish the Whirlwind and Strathmore sub-areas, located near P1368.
Because of new commitments, Hurricane no longer plan to operate any further horizontal producers in the Greater Warwick area. Drilling is not likely to start before June 2020.
In 2019, Hurricane is guiding for total production of 3.1 million barrels of oil, equivalent to an average rate of 13,300 barrels per day. Oil sales are to total 2.8 million barrels over seven cargoes and revenue generated is likely to be around $165 million with year-end unrestricted cash to be approximately $150 million.
Chief Executive Robert Trice said: “We are pleased to have extended the licence over the Lancaster and Lincoln subareas for a further five years. We anticipate having taken a final investment decision on full field development plans for both fields by the end of that period. The deep wells that now form part of our programme will target the delineation of the maximum extent of both the Lancaster and Lincoln oil columns to a more definitive level.”
Elsewhere in the wider industry, Eurasia Mining saw their shares rally following progress in their Russian operations. Eurasia reported that it is edging closer to securing the final approval for the Tipil permit, a platinum group metals target located in Russia.
Notably, last week FTSE100 listed Fresnillo saw their shares crash yesterday, after the firm gave a pessimistic annual production estimate.
