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Hurricane Energy


£101m market cap

5.07p last close

Hurricane Energy is an E&P focused on fractured basement exploration and development in the West of Shetland region. The company’s 100%-owned Lancaster oil discovery achieved first oil on target in H119.

Investment summary

On 8 June Hurricane announced the resignation of Dr Robert Trice as CEO and Beverley Smith has been appointed as interim CEO. Beverley will oversee a thorough review of all available data and will propose a future activity programme to increase production while maintaining capital discipline. Production from the Lancaster early production system (EPS) was relying on the deliverability of the 205/21a-6 well following Hurricane’s unexpected shut-in of 205/21a-7z in May 2020 and full-year guidance was suspended. Electrical Submersible Pumps (ESPs) were commissioned in early July 2020 and both wells are now flowing with ESPs at a combined rate of c 17,000bopd and are being tested before finalising a near-term production strategy. Our risked valuation stands at 37.1p/share and our core NAV at 13.6p/share.

Y/E Dec
Revenue (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2018A 0.0 (12.6) (18.5) (2.2) N/A N/A
2019A 170.3 (11.7) 30.0 (2.5) N/A 1.1
2020E 156.1 47.7 (58.7) 12.9 0.5 2.1
2021E 171.0 65.3 (27.0) 13.9 0.5 2.5
Industry outlook

Hurricane has further drilling opportunities both to expand near-term production and reduce uncertainty over the scale of long-term resources that might be exploited in a full field development.

Last updated on 11/08/2020
Oil & gas
Share price graph
Balance sheet
Forecast net cash (US$m) 10.6
Forecast gearing ratio (%) N/A
Price performance
Actual (18.6) (56.6) (87.6)
Relative* (19.9) (58.7) (85.7)
52-week high/low 47.6p/4.8p
*% relative to local index
Key management
Richard Chaffe CFO
Beverley Smith Interim CEO
Philip Corbett Head of IR

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