West of Shetlands, Hurricane Energy has generated around $ 20 million in cash from its oil production operations over the past month, after a period in which it has faced great challenges.
Hurricane made promising discoveries in an area in which there had been relatively little drilling, but subsequently reduced the size estimates for the discoveries.
The company said yesterday it averaged around 11,500 barrels of oil per day in August from the only discovery it has put into service, Lancaster.
Hurricane had $ 144 million in cash on hand as of August 31, up from $ 122 million at the end of July.
The company used some of the money this month to reduce its debt. Last week, he struck a deal to buy back more than a third of the $ 230 million in outstanding bonds at a discounted price, at an expense of $ 62 million.
Chief Executive Officer Antony Maris noted that the effect of the deal will save the company approximately $ 22 million in future obligations to bondholders in principal and interest.
READ MORE: Shetland oil company faces uncertainty after High Court ruling
In June, the High Court blocked a proposed debt-for-stock swap that would have left bondholders 95 percent of Hurricane’s shares. Shareholders had opposed the plan, but Hurricane directors said it was the only realistic option open to the company.
Hurricane announced yesterday that PKF Littlejohn has been appointed as the new external auditor.
At the company’s general meeting in June, the resolution to reappoint Deloitte as Hurricane’s auditor was not passed.
Shares of Hurricane Energy closed up 10%, 0.32p, at 3.4p. yesterday
They sold for 60p in 2019 after the company started production from the Lancaster field.
READ MORE: Field start-up in West Shetlands proves oil pioneer right
Hurricane, based in Surrey, was founded by geologist Robert Trice to focus on a layer of granite known as the fractured basement. Mr. Trice resigned from his post as Managing Director in June of last year.