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Hurricane Energy banks £12.7mln from warrant exercise

The funding gives flexibility as Hurricane advances its project finance efforts.
Hurricane Energy offshore oil workers, a west of Shetland well drilled in 2014
Some new shares were placed with institutions at 51p each

Hurricane Energy Plc (LON:HUR) confirmed after Wednesday’s market close that it has banked £12.7mln after recently issued share warrants were exercised.

The UK offshore oiler earlier this month issued warrants to Stifel, which have subsequently been exercised.

It was confirmed yesterday that 5.5mln new shares were sold into the market by Stifel between May 12 and May 16, before a further 19.5mln shares were placed with institutional investors by Stifel and Cenkos at a price of 51p per share.

Hurricane said that the aggregate proceeds to the company amounted to £12.73mln.

The cash supports the group’s efforts to advance the large Lancaster project towards first production.

Presently, the company is navigating a project financing process, to raise enough capital to fund the US$467mln early production system at Lancaster.

The eventual project funding may include a farm-out to a new major partner, and may also include debt and equity elements.

Hurricane is targeting project sanction later this year, which would put it on a schedule to start production from Lancaster in the first half of 2019.

On May 12, as it announced the warrant issue, Hurricane told investors that it was committing to long lead items for the Lancaster discovery’s early production system (EPS). The orders allow the company to maintain the targeted timetable, which sees first oil in 2019.

Existing cash resource would cover the items though the company said the warrants provide a source of financial flexibility.

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