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Hurricane Energy net free cash position "proves liquidity" 

Hurricane Energy believes the net free cash it has produced provides a useful measure of liquidity after settling all its immediate and accruals, and recovering amounts due and accrued from joint operations. 

It comes after the oil producer recorded a small increase in net free cash in between 31 March 2021 and 30 June 2021, going from $127m (£93.2m) to $134m (£98.3m).

 

The main movements over the three-month period included it generating revenues of $69m (£50.6m) from two liftings of crude from its flagship Lancaster field off the west of Shetland in the second quarter of the year. This resulted in an average realised price of $66 (£48) per barrel of crude oil.


It also recorded net cash capital expenditure of $1m (£734,165), and an increase in net working capital of $9m (£6.6m), the majority of which are accruals relating to the Lincoln-14 well plug and abandonment activity.


This news comes just weeks after the High Court in England and Wales had rejected the oil company’s restructuring plan. At the time, the business said it would be “considering all options” including an appeal.


The court ruling came off the back of the news that the business had entered a “period of financial restructuring” after recording losses of $625.3m (£459m). This included impairment charges to its Lancaster oil and gas field of $567.1m (£416.3m).


It should be noted that the net free cash is calculated and does not take into account future liabilities that the company is already committed to.

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