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Oil Capital
EPIC: HUR
Market: LSE
52-week High/Low: 64.50p / 38.20p
Sector: Energy
Market Cap: 899.58M

Hurricane was established to discover, appraise and develop hydrocarbon resources from naturally fractured basement reservoirs.

Hurricane Energy PLC

www.hurricaneenergy.com

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Big picture - Why invest in Hurricane Energy PLC

Hurricane Energy PLC Snapshot

Hurricane’s strategy is to create shareholder value through monetising the significant reserves and resources associated with the naturally fractured basement reservoirs within its portfolio through exploration, appraisal and development.

Strategy

Generate data needed to plan future development phases whilst producing cash flow to maintain portfolio progress.

Full field development stages require production data for efficient planning. Early production systems deliver this whilst generating cash flow to fund future stages and broader work programmes.

Latest progress and outlook

  • Lancaster EPS first oil target of H1 2019 maintained following completion of FPSO upgrade and offshore installation works
  • Targeting first oil from GWA tie-back and gas export in Q4 2020
  • Debottlenecking Aoka Mizu to raise throughput capacity from 30,000 bopd to 40,000 bopd by the end of 2020

Develop

Strategy

Convert resources to reserves to maximise value ascribed by the market and industry.

Hurricane’s discoveries have been assigned significant contingent resources by third party reserve consultant, RPS Energy. Contingent resources describe the potential recoverable volume of a discovery, being converted to reserves with an associated development plan. Hurricane is therefore maximising near-term reserve growth with early production systems to be followed by phased full field developments.

Latest progress and outlook

  • Focussed on execution of the Lancaster EPS development throughout 2018
  • Delivered Lancaster EPS development to schedule, as first laid out in 2016
  • Now pursuing a path to development of the GWA, following the Spirit deal which aims to unlock initial reserves of half a billion barrels (gross) from current resources
  • Building on the Lancaster EPS, Hurricane intends to submit a plan to the regulator addressing a full field development for the Lancaster field by 2024

Appraise & explore

Strategy

Narrow range of reserves and resources using unparalleled knowledge of UKCS basement reservoirs.

Hurricane was the first company to target fractured basement in the UK and has discovered over 2.6 billion barrels of oil equivalent within its Rona Ridge portfolio. Maintaining momentum across the portfolio will help to achieve value for the maximum number of barrels of resources, whether through analysis of production data or drilling further wells to explore or appraise other areas.

Latest progress and outlook

  • Drill-ready philosophy allowed 2019 well timing to be locked in with signing of Transocean Leader contract on closing of Spirit farm-in
  • 2019 wells to evaluate 935 mmboe prospective resource on the Warwick structure and further de-risk 604 mmboe contingent resources at Lincoln
  • Spirit deal includes full carry of 2019 wells and potential additional GWA wells in 2020; planning is underway
  • Lancaster EPS start-up sequence designed to maximise early generation of data

Overarching priority

HEALTH, SAFETY & THE ENVIRONMENT

Operations

We explore basins that have proven petroleum systems.

These basins are often associated with low cost data packages, including wells and seismic data, offering a ready-made geological framework from which Hurricane generates new exploration ideas at relatively low risk.

Hurricane has retained operatorship of all our operations and that has been part of our strategy from the company's inception. We maintain control of the subsurface strategy so that we can capture the most value from our skills.

Assets

Hurricane's Rona Ridge discoveries, West of Shetland on the UK Continental Shelf, contain independently certified 2P Reserves plus 2C Contingent Resources of 2.6 billion1 barrels of oil equivalent (gross).

3D view of the Rona Ridge Top Basement depth surface, highlighting Hurricane’s P1368, P2308 and P2294 basement assets

The West of Shetland region of the UKCS is a proven petroleum basin with a number of large producing oil fields including Clair, Foinaven and Schiehallion.It is an area of significant activity attin terms of exploration and development.

Hurricane has five major discoveries in the region, the most advanced of which, Lancaster, is now progressing towards the first stage in a phased development, which is targeting first oil in H1 2019.

1Oil equivalent barrels includes gas; based on combination of RPS May-2017 CPR, Whirlwind oil case and RPS Dec-2017 CPR (Note that PRMS advises that arithmetic addition of resources is not statistically correct)

Lancaster EPS

Lancaster is now proceeding towards first phase of development, an Early Production System (EPS)

Hurricane plans a phased development of the Lancaster field. The first phase of the development is an Early Production System (EPS), using two wells tied back to the Aoka Mizu Floating Production Storage and Offloading (FPSO) vessel.

Objectives of the EPS
  
1  To provide long term production data to enhance understanding of reservoir characteristics and associated full field development scenarios
2 Commence development of the resources in a phased manner with regard to managing uncertainties over reservoir characteristics and associated development risks
3 Deliver an acceptable return on investment

Board of directors

Hurricane's board members bring a broad range of business skills and extensive experience to the company.

Executive directors

Dr Robert Trice
Chief Executive Officer

Alistair Stobie
Chief Financial Officer

Neil Platt
Chief Operations Officer

Non-executive directors

Steven McTiernan
Chairman

Dr David Jenkins
Senior Independent Non-Executive Director

John van der Welle
Non-Executive Director

Roy Kelly
Non-Executive Director

Sandy Shaw
Non-Executive Director

Alternate directors

Jason Cheng
Alternate Director

Leonard Tao
Alternate Director

Hurricane has offices in Eashing (Surrey) and Aberdeen.

Head office
Hurricane Energy plc
The Wharf Abbey Mill Business Park
Lower Eashing
Godalming
Surrey
GU7 2QN

Nomad and broker
Stifel
150 Cheapside
London
EC2V 6ET

Joint broker
Morgan Stanley
20 Bank Street
Canary Wharf
London
E14 4AD

Solicitors
Dentons
One Fleet Place
London
EC4M 7WS

Auditors and reporting accountants
Deloitte LLP
2 New Street Square
London
EC4A 3BZ
United Kingdom

Independent Competent Person
RPS Energy Limited
140 London Wall
London
EC2Y 5DN

Registrar and receiving agent
Computershare Investor Services Plc
The Pavilions
Bridgwater Road
Bristol
BS99 6ZZ
E: [email protected]


PR and communications advisers
Vigo Communications
Sackville House
40 Piccadilly
London
W1J 0DR
E: [email protected]

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