UK-based oil and gas firm Hurricane Energy's (LON: HUR) share price is rallying on Friday after it provided an operational and financial update.
The AIM-listed company said that as it previously noted, following the annual shutdown, production rates were elevated, which meant the average oil rate for August was higher than in previous months.
“This increased production rate was accompanied initially by a greater rate of decline, such that the current oil production is now similar to the rate seen just prior to the shutdown,” Hurricane Energy said in a statement.
For August, oil produced from the P6 well at the Lancaster field was 355 thousand barrels (Mbbls), with an average oil rate of 11,467 barrels of oil per day (bopd) and an average water cut of 29%.
As of September 15, Lancaster was producing 10,800 bopd from the P6 well alone with an associated water cut of around 33%.
Over 10 million barrels of Lancaster crude have now been produced and sold from the Lancaster field, with the next cargo expected to be lifted in early- to mid-October 2021.
Speaking about its current financials, Hurricane said it had net free cash of $144 million at the end of August compared to $122 million at the end of July.
The company also completed the repurchase of approximately 34% of its outstanding $230 million 7.5% Convertible Bonds due in July 2022 at a cost of $62 million.
Hurricane is set to publish its interim report and half-year results on October 14.
The company's shares are currently trading at 3.366p, up over 9% on Friday. They initially climbed to a high of 3.898p.
Hurricane Energy shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Hurricane Energy shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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