The Press and Journal (Inverness, Highlands, and Islands)
Hurricane’s $70million new field boost
Hurricane Energy said yesterday that the $70million it has conditionally raised through a share placing would be used to develop its flagship Lancaster discovery in the North Sea.
Hurricane shares were down7.8% at one point yesterday, but the announcement rallied them to finish the session 1.29% to the good at 39.25p.
The London-listed company said the fundraising drive would help firm up the timeline for the early production system (EPS) on Lancaster. The cash will be put towards the cost of engineering studies, subsea equipment and the drilling of exploration wells on two nearby prospects.
Hurricane, set up in 2005, said Kerogen Investor and Crystal Amber had signed up for 93million shares for £31.6million.
The placing is subject to shareholder approval, with the firm’s general meeting to be held on November 7.
Lancaster, thought to be one of the North Sea’s largest undeveloped fields, forms part of Hurricane’s portfolio of west of Shetland “fractured basement” exploration projects.
Hurricane expects to make a final investment decision on the EPS in the first half of 2017, with first oil targeted for 2019.
Hurricane chief executive Robert Trice said: “The transaction also allows us to continue to strengthen the quality of our investor base.”