£49.8m market cap
2.5p 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
Hurricane’s ongoing technical review has confirmed significantly shallower oil water contacts than previously estimated and a more complex Lancaster reservoir system. Lancaster early production system 2P reserves have been reduced from 37.3mmbbls to 16mmbbls with remaining reserves of 9.4mmbbls. 2C resources are now 58mmbbls from 486mmbbls. Lincoln 2C resources have been cut to 45mmbbls from 565mmbbls. Work is continuing to assess the contribution to production of onlapping sandstones and possible remediation options in Lancaster, including water injection. October production of 14,500bopd is expected to decline slowly without further activity: guidance from 1 September to 31 December is 12,000–14,000bopd. Hurricane has reverted to holding £16.8m of cash security in trust for decommissioning obligations after the decommissioning bond was terminated. Our valuation was suspended in August.
Y/E Dec |
Revenue (US$m) |
EBITDA (US$m) |
PBT (US$m) |
EPS (c) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2018A | 0.0 | (12.6) | (18.5) | (2.2) | N/A | N/A |
| 2019A | 170.3 | (11.7) | 30.0 | (2.5) | N/A | 0.6 |
| 2020E | N/A | N/A | N/A | N/A | N/A | N/A |
| 2021E | N/A | N/A | N/A | N/A | N/A | N/A |
Industry outlook
Lancaster near-term production will depend on the outcome of the ongoing technical review and Hurricane’s financial position.
Last updated on 20/01/2021
Sector |
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| Oil & gas |
Share price graph
Balance sheet |
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| Forecast net debt (US$m) | N/A |
| Forecast gearing ratio (%) | N/A |
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Key management |
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| Richard Chaffe | CFO |
| Beverley Smith | Interim CEO |
| Philip Corbett | Head of IR |
