Shares of Hurricane Energy PLC (LON: HUR) surged 14% after the oil exploration, and mining company reported that total oil production for the 2020 calendar year was 5.1MMbbls or an average of 13,900 barrels per day.
The company sold all of the oil produced generating full-year revenues of $179 million resulting in a net free cash flow of $106 million at the end of December compared to the $86 million free cash flow recorded in November.
Hurricane noted that during the fourth quarter, oil production was lower averaging 12,700 bopd following a decision to limit production from the 205/21a-6 well to c.12,000 bopd in November 2020 for reservoir evaluation management purposes.
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The Lancaster field continues to produce from the 205/21a-6 well alone, with the 19th cargo of Lancaster oil was lifted at the end of December 2020.
Antony Maris, Hurricane Energy’s EO, commented: “Production in line with expectations, a December lifting from Lancaster, and higher oil prices combined to deliver a $19 million increase in net free cash at year-end compared to end November 2020. A continued recovery in oil prices would further enhance the significant value we see in our West of Shetland portfolio.
Adding:
“As previously reported, we are currently engaging with our stakeholders on a proposed development plan for Lancaster and its associated funding in order to maximise the potential value of our assets.”
Hurricane Energy share price
Hurricane Energy shares surged 14.07% to trade at 3.0p having risen from Wednesday’s closing price of 2.63p.