Discovery of 1bn barrels of crude lifts oil explorer
HURRICANE Energy shares surged as it confirmed a major oil find off the Shetlands.
The oil and gas business said independent data had indicated it may have made the largest ever undeveloped discovery on the UK Continental Shelf.
Hurricane said its Halifax project may be a 0.6-mile-deep oil column which could be connected to its Lancaster field. It had previously been speculated that if the two were linked the area could hold 1bn barrels of oil.
Chief executive Dr Robert Trice said it was a ‘highly significant moment’ for the firm. One oil expert said: ‘Further justification, if any were needed, that Hurricane has a monster find on its hands.’
Hurricane hopes to start production in 2019. Shares gushed 8.7pc, or 4.75p, to 59p.
And it wasn’t the only oil and gas firm with a big announcement on the day. Jersey Oil and Gas leapt after a Competent Persons Report upgraded the firm’s estates for the North Sea site it plans to drill this summer.
Jersey has an 18pc interest in the Verbier and Cortina prospects. Management had estimated 118m barrels of oil equivalent (an industry term which indicates the amount of energy at the site equivalent to the amount of crude oil barrels) from Verbier, but a third party has now upgraded this to 162m. It also upped the chance of success from 26pc to 29pc.
The Cortina prospect estimate was increased from 91m to 124m barrels of oil equivalent, with a chance of success of 19pc. Shares gained 7.7pc, or 18p, to 250.5p.
The FTSE 100 fell 0.6pc, or 43.3 points, to 7293.5. Stagecoach
Group shares slipped as it lost its South West Trains contract after more than two decades operating the network.
The transport operator lost out to FirstGroup in a tender for the franchise, which it has run since it was privatised in 1996.
FirstGroup will begin operating the network this summer in a seven-year deal running until at least 2024, with the option for an 11-month extension.
Over that period some £1.2bn is to be invested in the franchise, including adding 750 carriages and 18 trains as well as £90m of investments at stations, particularly a major refurbishment at Southampton Central station.
Stagecoach said it would seek detailed feedback from the Department for Transport as to why it lost out on the bid.
Stagecoach shares were off 1pc, or 2p, to 198.1p. FirstGroup gained 3.3pc, or 4.1p, to 128.2p.
Lab testing firm Exova soared as it confirmed it was the subject of acquisition offers. The business said it had received proposals from Element Materials Technology, Jacobs Holding and PAI Partners. Exova said the offers were conditional on due diligence and the board’s recommendation, among other things.
Each possible offeror has until April 24 to announce a firm intention. Shares advanced 13.3pc, or 29.1p, to 248p.
Cloudcall shares climbed in anticipation of today’s full-year results. The cloud-based software firm will announce revenues are up around 50pc to £4.9m and that the business is on track for profitability next year.
Cloudcall will tell investors that 85pc of its revenue is now recurring and US performance is driving growth. Shares jumped 6.7pc, or 6.5p, to 103p.
Old Mutual announced that it planned to sell 25pc of its holding in OM Asset Management for £354.5m to HNA Capital US. Old Mutual shares slipped 2pc, or 4.5p, to 218p.