Hurricane Energy PLC (AIM: HUR) Operational and Financial Update

Hurricane Energy plc, the UK based oil and gas company, provides an update on Lancaster field operations and net free cash balances as of 31 January 2022.

Lancaster Field Operations Update

The following table details production volumes, water cut and minimum flowing bottom hole pressure for the 205/21a-6 (“P6”) well during January 2022.

January 2022 Lancaster Field Data

1. The 205/21a-7z (“P7z”) well was not on production during January 2022

2. Expressed as total water produced divided by total fluid (oil and water) production

3. Pressure reported is the monthly minimum from well downhole gauge

As of 14 February 2022, Lancaster was producing c.9,500 bopd from the P6 well alone with an associated water cut of c.41%.

The 27th cargo of Lancaster oil, totalling approximately 530 Mbbls, was lifted on 25 January 2022. This cargo was priced by reference to the average of the first five days of January’s Dated Brent quotes, being $81.4/bbl. The next cargo is anticipated to be lifted in late March 2022.

Financial Update

As anticipated, and in line with previous announcements, the Regulator has now formally requested that the Company lodge additional funds as decommissioning security. The Company remains in discussions with the Regulator as to the exact amount and timing of placing of these funds into trust which are currently expected to be up to £5.7 million ($7.7 million), later in Q1 2022. This will increase the amount of funds placed into trust, and which are therefore classified as restricted cash, from £28 million to £33.7 million.

During January, the Company received $3.2 million of cash rebates relating to R&D tax claims in respect of the 2019 tax year. An additional c.$1.3 million claim in respect of the 2020 tax year is still under review by HMRC but is anticipated to be received later in Q1 2022.

As of 31 January 2022, the Company had net free cash(4) of $85 million ($77.3 million after taking into account the above mentioned planned increase in restricted cash) compared to the last reported balance of $50 million as of 31 December 2021. $78.5 million of Convertible Bonds remain outstanding and due July 2022.

The Company believes that net free cash provides a useful measure of liquidity after settling all its immediate creditors and accruals and recovering amounts due and accrued from joint operation activities, outstanding amounts from crude oil sales and after settling any other financial trade payables or receivables. It should be noted that the net free cash is calculated as at the balance sheet date and does not take into account future liabilities that the Company is already committed to but have not yet been accrued. As such, not all of the net free cash would be available for repayment of the remaining outstanding Convertible Bonds at their maturity in July 2022.

4. Unrestricted cash and cash equivalents, plus current financial trade and other receivables, current oil price derivatives, less current financial trade and other payables.

-ends-

Contacts:

Hurricane Energy plc

Antony Maris, Chief Executive Officer

communications@hurricaneenergy.com

+44 (0)1483 862820

Stifel Nicolaus Europe Limited

Nominated Adviser & Joint Corporate Broker

Callum Stewart / Jason Grossman

+44 (0)20 7710 7600


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