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Hurricane swings to loss as it moves towards production at Lancaster
UK-based oil and gas company Hurricane Energy announced its final audited results for the year ended 31 December on Tuesday, describing the period as a "transformative year", which took the Lancaster Early Production System (EPS) into a project execution phase, targeting first oil in the first half of 2019.
The AIM-traded firm said key EPS achievements included the final investment decision and approval of the field development plan by the Oil and Gas Authority.
It also published two competent person's reports, which independently certified 2.6 billion barrels of oil equivalent of 2P reserves + 2C contingent resources.
A total of $547m was raised in new equity and convertible bonds before expenses, which fully financed the EPS.
On the financial front, the 2017 loss after tax was $7m, swinging from a profit after tax of $0.9m in the prior year.
The company ended 2017 with $360m in cash and liquid investments, rising from $101.5m a year earlier.
"Last year saw the company gain both operational and commercial momentum as it moves toward first production and material cash generation," said chief executive Dr Robert Trice.
"Accordingly, Hurricane went through a step change in 2017; we booked our first reserves, increased our 2C contingent resources by 450% and obtained FDP approval on the first phase of development of our assets."
Dr Trice said first oil on the Lancaster EPS remained on schedule for the first half of 2019.
"As we look ahead to this milestone, we are in a position of strength with 100% ownership of a portfolio of assets with resources measured in the billions of barrels and with line of sight on further activity to ultimately achieve monetisation."