TIDMHUR
RNS Number : 5005K
Hurricane Energy PLC
22 September 2016
Embargoed: 0700hrs 22 September 2016
This announcement contains inside information
Hurricane Energy plc
("Hurricane," the "Group" or the "Company")
Half Yearly Results 2016
Hurricane Energy plc, the UK-based oil and gas company focused
on hydrocarbon resources in naturally fractured basement
reservoirs, announces the publication of its interim report and
financial statements for the six months ended 30 June 2016. A copy
of the report is available on the Company's website at
www.hurricaneenergy.com/Investors/ResultsReports/.
Operational highlights
-- Commenced the Lancaster 7 Wells, two-well drilling programme in July 2016
-- Interim results from Pilot Well confirmed a significant oil
column deeper than the 2C Case set out in Hurricane's CPR -
Lancaster field likely to be significantly greater than the 200
million barrel 2C Case currently estimated
-- Drilling of Horizontal Sidetrack Well now underway
-- Progressed plans for EPS - base case increased to 62 million
barrel development with life-of-field OPEX reducing to $26 per
barrel
Financial highlights
-- Raised GBP52.1m from Kerogen and other institutional
investors in May 2016 to fund Lancaster 7 Wells drilling
programme
-- Operating expenses reduced by 6.5% to GBP2.9m (H1 2015: GBP3.1m)
-- Loss after tax reduced by 44% to GBP1.8m (H1 2015: GBP3.2m)
-- Group had cash and cash equivalents at 30 June 2016 of
GBP57.4m (including GBP2.3m held in escrow) (31 December 2015:
GBP9.9m (including GBP2.3m held in escrow))
Corporate highlights
-- Temporarily suspended farmout discussions in June 2016 until
completion of the Lancaster 7 Wells and subsequent analysis -
expect to re-open data room by end of year
-- Appointment of Roy Kelly, Managing Director and Head of
Technical at Kerogen Capital, as Non-executive Director in May 2016
- over 33 years of technical, commercial and managerial experience
in upstream oil and gas
Dr Robert Trice, CEO of Hurricane, commented:
"Our efforts during the first half to bring on board sufficient
funding to deliver a two-well drilling programme this year came to
fruition in May with the investment of GBP52.1m by Kerogen and
other institutional investors. This enabled Hurricane to take
advantage of the availability of the Transocean Spitsbergen
drilling rig and begin, in June, a two-well drilling programme on
the Lancaster field.
"The interim results of the first well in the drilling programme
have been highly encouraging, confirming a significant oil column
deeper than the 2C Case set out in Hurricane's CPR. Our initial
assessment of the well results suggest that the Lancaster field is
likely to be significantly greater than the 200 million barrel 2C
Case currently estimated.
"Drilling of the Horizontal Sidetrack Well is underway and we
look forward to reporting results of this later in the fourth
quarter."
Contacts:
Dr Robert Trice (Chief Executive
Officer)/
Hurricane Energy Alistair Stobie (Chief Financial +44 (0)1483 862
plc Officer) 820
Nominated Adviser and Joint
Corporate Broker
Cenkos Securities Derrick Lee/Nick Tulloch/Beth
plc McKiernan +44 (0)131 220 6939
Macquarie Capital Joint Corporate Broker
(Europe) Limited Fergus Marcroft/Alex Reynolds +44 (0)20 3037 2000
Vigo Communications Public Relations +44 (0)20 7830 9704
Patrick d'Ancona/Ben Simons hurricane@vigocomms.com
About Hurricane
Hurricane is an oil and gas company focused on hydrocarbon
resources in naturally fractured basement reservoirs. The Company's
focus is to discover, appraise and develop oil reserves in basement
rock. Hurricane has already successfully discovered substantial
volumes of oil on the UKCS. The Company has 444-470 mmboe of 2C
Contingent Resources and 432-442 mmboe of P50 Prospective Resources
on acreage it controls 100%.
The following is the full text of the Group's interim report and
financial statements:
Chief Executive's Report
I am pleased to present a review of operations for the first
half of 2016, an exciting period in Hurricane's history during
which the Company raised GBP52.1 million in order to drill two
further wells on our Lancaster oil field.
We were delighted to welcome Kerogen Capital to the shareholder
register in May 2016 and to complete the capital raise led
principally by Kerogen Capital and Crystal Amber, which enabled us
to start drilling the Lancaster 7 Wells.
Operations Update
Lancaster 7 Wells
On 9 September, the Company announced the interim results of the
Pilot Well. We were delighted with the results confirming a minimum
oil down to ("ODT") of 1,620 metres TVDSS which is 240 metres TVD
below structural closure. This result confirms the Company's
reservoir model for the Lancaster field. We see no reason why
similar results should not be replicated on our Lincoln, Warwick
and Typhoon prospects and Whirlwind discovery.
DST testing of the basement reservoir yielded a maximum natural
flow rate of 6,600 barrels of oil per day ("bopd") and a maximum
flow rate of 11,000 bopd (artificial lift with an electrical
submersible pump) of good quality 38 degree API oil with no
formation water produced. This flow is interpreted as predominantly
emanating from a single fault zone within the basement
reservoir.
The Company is now updating its resource model prior to
producing an updated CPR and, as such, we are delighted that
wireline and well test data indicated that no pressure barriers
were detected in the reservoir, and that wireline samples of oil
have been recovered to surface from deeper than our minimum oil
down to case. Once these data are fully evaluated we anticipate a
significant resource upgrade of the Lancaster reservoir.
The drilling of the sidetrack Horizontal Well has now kicked off
and we look forward to reporting the results of this well in due
course. Further refinement of the Pilot Well data should lead to a
further update towards the end of the year.
Early Production System ("EPS")
Concurrently with drilling operations, we have materially
progressed our plans for the EPS during the period. At the time of
the capital raise our base case was a two-well 53 million barrel
development via an FPSO, with life-of-field operating cost of $35
per barrel. Prior to updating the reservoir model as a result of
the Pilot Well results, the base case has been revised to a 62
million barrel development with life-of-field operating cost of $26
per barrel at the same capital expenditure.
During the second half of the year we will continue to work with
FPSO and subsea production facility providers to refine our
development in order to meet FID during H1 2017. We believe that
the EPS has been materially de-risked by the results of the Pilot
Well.
Farmout / EPS Financing
As noted in the Financial Review which follows, in order to
finance the EPS the Company will have to either raise capital
across the equity and debt spectrum and / or farm down a portion of
some or all of the Company's assets. In June 2016, we temporarily
suspended farmout discussions until completion of the Lancaster 7
Wells and subsequent analysis. We expect that the data room will be
re-opened by the end of the year once all the data from the
drilling campaign has been analysed.
Survey
After the period ended we completed an initial seabed and
environmental survey of areas adjacent to Lancaster and Lincoln
which might be required for FPSO moorings and otherwise to bring
our seabed surveys up to date.
Financial review
On 10 May 2016 the Group raised GBP52.1 million (gross proceeds)
principally to fund the drilling of the Lancaster 7 Pilot and
Horizontal Sidetrack Well.
Despite the increased activity associated with raising capital
and planning and preparing for drilling operations, the Group's
operating expenses were 6.5% lower at GBP2.9 million compared with
H1 2015 of GBP3.1 million. The number of full time staff decreased
to 14 in the period (H1 2015: 17). There has been a corresponding
reduction in total employment costs of the business to GBP2.5
million in H1 2016 from GBP3.0 million in H1 2015 due to a decrease
in staff numbers and a lower share-based payment expense of GBP0.9
million (H1 2015: GBP1.4 million).
The Group recorded a loss after tax of GBP1.8 million, which is
a significant decrease compared with the H1 2015 loss after tax of
GBP3.2 million. In addition to the reductions in operating expenses
in H1 2016, there was a positive impact from converting GBP into US
Dollars to fund US Dollar based drilling costs prior to the 23 June
referendum vote and the subsequent sharp movement in GBP:US Dollar
rates.
The Group ended the period with GBP57.4 million of cash and cash
equivalents (including GBP2.3 million held in escrow within
non-current assets and GBP14.6 million held as restricted cash to
be used in the Lancaster 7 Wells drilling programme) available to
meet its expected drilling costs, outstanding trade and other
payables of GBP1.8 million at 30 June 2016 and prospective G&A
costs, for at least the next twelve months based on the Group's
cash flow forecasts.
The Group will need to either raise additional capital and/or
farm down its equity in Lancaster and its other assets in order to
fund the EPS costs.
Risk Management
The Executive Directors continually monitor the Group's risk
exposures and report to the Audit Committee and Board of Directors
as required. The principal risks of the Group remain as detailed on
pages 19 - 21 of the 2015 Annual Report and Group Financial
Statements.
The Group has reviewed its operations in light of the referendum
vote on 23 June. Other than the immediate impact of change in
GBP:US Dollar exchange rates, for which the Group was prepared, the
Executive Directors do not believe that the vote will have an
impact on the business in the immediate future.
Dr Robert Trice
CEO
21 September 2016
Glossary of terms used in the Chief Executive's Report
CPR competent person's report
DST Drill Stem Testing
TVD true vertical depth
TVDSS true vertical depth
(sub-sea)
Independent Review Report
We have been engaged by the company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 June 2016 which comprises the condensed
consolidated income statement, the condensed consolidated balance
sheet, the condensed consolidated statement of changes in equity,
the condensed consolidated cash flow statement and related notes 1
to 11. We have read the other information contained in the
half-yearly financial report and considered whether it contains any
apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
This report is made solely to the company in accordance with
International Standard on Review Engagements (UK and Ireland) 2410
"Review of Interim Financial Information Performed by the
Independent Auditor of the Entity" issued by the Auditing Practices
Board. Our work has been undertaken so that we might state to the
company those matters we are required to state to it in an
independent review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the company, for our review work, for this
report, or for the conclusions we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the directors. The directors are responsible
for preparing the half-yearly financial report in accordance with
the AIM Rules of the London Stock Exchange.
As disclosed in note 2, the annual financial statements of the
group are prepared in accordance with IFRSs as adopted by the
European Union. The condensed set of financial statements included
in this half-yearly financial report have been prepared in
accordance with the accounting policies the group intends to use in
preparing its next annual financial statements.
Our responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
June 2016 is not prepared, in all material respects, in accordance
with the accounting policies the group intends to use in preparing
its next annual financial statements and the AIM Rules of the
London Stock Exchange.
Deloitte LLP
Chartered Accountants and Statutory Auditor
London, UK
21 September 2016
Condensed Consolidated Income Statement for the 6 months ended
30 June 2016
6 months ended 6 months ended 12 months
ended
Notes 30 Jun 2016 30 Jun 2015 31 Dec 2015
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Operating expenses (2,910) (3,084) (5,448)
Operating loss (2,910) (3,084) (5,448)
Investment revenue 34 14 37
Foreign exchange gains / (losses) 4 1,117 (55) 28
Finance costs (32) (68) (140)
Loss before tax (1,791) (3,193) (5,523)
Tax - - -
Loss for the period (1,791) (3,193) (5,523)
-------------- -------------- ------------
Loss per share, basic and diluted 5 (0.25) pence (0.51) pence (0.87) pence
All of the Group's operations are classed as continuing.
There was no income or expense in any period other than that
disclosed above. Accordingly a Group Statement of Comprehensive
Income is not presented.
Condensed Consolidated Balance Sheet as at 30 June 2016
Notes 30 Jun 2016 30 Jun 2015 31 Dec 2015
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 52 153 89
Intangible exploration and
evaluation assets 6 177,804 178,758 176,012
Other receivables 130 130 130
Other non-current assets* 2,325 2,311 2,318
----------- ----------- -----------
180,311 181,352 178,549
Current assets
Inventory 410 - 410
Trade and other receivables 1,260 1,115 420
Cash and cash equivalents* 55,042 10,090 7,623
----------- ----------- -----------
56,712 11,205 8,453
Total assets 237,023 192,557 187,002
Current liabilities
Trade and other payables 7 (1,751) (698) (271)
Current tax liabilities - - -
(1,751) (698) (271)
Non-current liabilities
Decommissioning provisions 8 (3,251) (7,350) (3,221)
----------- ----------- -----------
Total liabilities (5,002) (8,048) (3,492)
----------- ----------- -----------
Net assets 232,021 184,509 183,510
----------- ----------- -----------
Equity
Share capital 9 984 633 633
Share premium 260,556 210,814 210,814
Share option reserve 8,984 6,830 8,089
Own shares held by SIP Trust (232) (267) (195)
Equity shares to be issued - 649 649
Accumulated deficit (38,271) (34,150) (36,480)
----------- ----------- -----------
Total equity 232,021 184,509 183,510
----------- ----------- -----------
* Prior period balances have been restated (see note 2).
Condensed Consolidated Statement of Changes in Equity for the 6
months ended 30 June 2016
Share Share Share Own shares Equity Accumulated Total
capital premium option held by Shares deficit
reserve SIP Trust to be
issued
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January
2015 (audited) 632 210,697 5,420 (194) 696 (30,957) 186,294
Shares allotted 1 117 - - - - 118
Share options
charge - - 1,410 - - - 1,410
Equity shares
to be issued - - - - (47) - (47)
Own shares held
by SIP Trust - - - (73) - - (73)
Loss for the
period - - - - - (3,193) (3,193)
-------- -------- -------- ---------- ------- ----------- -------
At 30 June 2015
(unaudited) 633 210,814 6,830 (267) 649 (34,150) 184,509
-------- -------- -------- ---------- ------- ----------- -------
Share option
charge - - 1,259 - - - 1,259
Own shares held
by SIP Trust - - - 72 - - 72
Loss for the
period - - - - - (2,330) (2,330)
-------- -------- -------- ---------- ------- ----------- -------
At 31 December
2015 (audited) 633 210,814 8,089 (195) 649 (36,480) 183,510
-------- -------- -------- ---------- ------- ----------- -------
Shares allotted 351 49,742* - - - - 50,093
Share option
charge - - 895 - - - 895
Own shares held
by SIP Trust - - - (37) - - (37)
Equity shares
to be issued - - - - (649) - (649)
Loss for the
period - - - - - (1,791) (1,791)
-------- -------- -------- ---------- ------- ----------- -------
At 30 June 2016
(unaudited) 984 260,556 8,984 (232) - (38,271) 232,021
-------- -------- -------- ---------- ------- ----------- -------
The share option reserve arises as a result of the expense
recognised in the income statement to account for the cost of
share-based employee compensation arrangements.
* Includes GBP460k in relation to deferred bonus shares now
issued (see note 9).
Condensed Consolidated Cash Flow Statement for the 6 months
ended 30 June 2016
6 months 6 months 12 months
ended ended ended
Notes 30 Jun 2016 30 Jun 2015 31 Dec 2015
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Net cash outflow from operating
activities 10 (2,069) (1,867) (2,558)
Investing activities
Interest received 36 14 35
Expenditure on property, plant
and equipment (6) (2) (3)
Expenditure on intangible exploration
and evaluation assets (1,016) (1,567) (3,029)
Expenditure on inventory - - (410)
----------- ----------- -----------
Net cash used in investing
activities (986) (1,555) (3,407)
Financing activities
Interest paid (1) - (1)
Proceeds from issue of share
capital and warrants 49,533 22 23
Gross proceeds from SIP issue 18 - -
Deferred bonus arrangements
settled in cash (186) - -
Net cash provided by financing
activities 49,364 22 22
----------- ----------- -----------
Net increase / (decrease) in
cash and cash equivalents 46,309 (3,400) (5,943)
----------- ----------- -----------
Cash and cash equivalents at
the beginning of the period* 9,941 15,856 15,856
Net increase /(decrease) in
cash and cash equivalents 46,309 (3,400) (5,943)
Effects of foreign exchange
rate changes 1,117 (55) 28
----------- ----------- -----------
Cash and cash equivalents at
the end of the period* 57,367 12,401 9,941
----------- ----------- -----------
* Cash and cash equivalents includes GBP2,325k (30 June 2015:
GBP2,311k; 31 December 2015: GBP2,318k) of cash held in escrow
which has been included in the balance sheet in other non-current
assets.
Notes to the Interim Financial Statements for the 6 months ended
30 June 2016
1. General information
Hurricane Energy plc is a company incorporated in the United
Kingdom and registered in England and Wales under the Companies Act
2006 (registered company number 05245689). The nature of the
Group's operations and its principal activity is exploration for
oil and gas reserves principally on the UK Continental Shelf. The
address of Hurricane Energy plc's registered office is The Wharf,
Abbey Mill Business Park, Lower Eashing, Godalming, Surrey, GU7
2QN. Hurricane Energy plc's shares are listed on the AIM market of
the London Stock Exchange.
This Interim Report and Financial Statements was approved by the
Board of Directors and authorised for issue on 21 September
2016.
This set of Interim Financial Statements for the 6 months ended
30 June 2016 is unaudited and does not constitute statutory
accounts as defined by the Companies Act. The information for the
year ended 31 December 2015 contained within these Interim
Financial Statements does not constitute statutory accounts as
defined in Section 435 of the Companies Act 2006. The Group
Financial Statements for the year ended 31 December 2015 have been
delivered to the Registrar of Companies. The auditor's report on
those Financial Statements was unqualified, did not draw attention
to any matters by way of emphasis and did not contain a statement
made under Section 498 of the Companies Act 2006.
2. Basis of preparation
The annual financial statements of the Group are prepared in
accordance with IFRS as adopted by the European Union. The Interim
Financial Statements have been prepared using accounting bases and
policies consistent with those used in the preparation of the
audited Financial Statements of the Group for the year ended 31
December 2015 and those to be used for the year ending 31 December
2016.
The Interim Financial Statements have been prepared under the
historical cost convention, except for share based payments, which
have been measured at fair value, and in accordance with the
requirements of the AIM Rules.
During the period, management have reconsidered the
classification of cash balances held in escrow that relate to
decommissioning. As these balances may not be available for at
least 12 months from the balance sheet date, these balances have
been reclassified from Cash and cash equivalents within current
assests to Other non-current assets. The comparative balances have
been restated to reflect this reclassification.
3. Going concern
The Group's business activities, together with the factors
likely to affect its future development, performance and position
are set out in the Chief Executive's Report. The financial position
of the Group, its cash flows and liquidity position are set out in
the Interim Financial Statements. The Group has no source of
operating revenue and currently obtains working capital primarily
through equity financing. The Group is therefore dependent on
future fundraising, capital receipts or other forms of finance in
order to continue in operation in the long term and the Group's
work programme for developing its core assets is dependent on this
future fundraising activity. The Group has no external borrowings
and ended the period with GBP55.0 million of cash and cash
equivalents (excluding amounts held in decommissioning escrow)
available to meet its outstanding trade and other payables of
GBP1.8 million at 30 June 2016, the costs of the work programme for
the Lancaster 7 wells, and prospective general and administration
(G&A) costs for at least the next twelve months based on the
Group's cash flow forecasts.
The Directors have considered sensitivities to the Group's
forecasts, including the effect of the work programme for the
Lancaster 7 Wells for which the additional capital has been raised.
These sensitivities indicate that the Group is fully funded for
both the Lancaster 7 Wells operation and for prospective G&A
costs for at least the next twelve months based on the Group's cash
flow forecasts.
Therefore, having considered reasonable possible sensitivities
the Directors believe that the Group will be able to operate within
its existing funding and to meet all commitments as they fall due.
The Directors have a reasonable expectation that the Group has
adequate resources to continue in operational existence for the
foreseeable future. Thus they continue to adopt the going concern
basis of accounting in preparing the Interim Financial
Statements.
4. Foreign exchange gains and losses
Foreign exchange gains of GBP1.1 million (6 months ended 30 June
2015: loss of GBP0.1 million; year ended 31 December 2015: gain of
GBP0.1 million) relate to fluctuations in the US Dollar to Pounds
Sterling exchange rate. The Group's cash and cash equivalents are
predominately held in Pounds Sterling. In May 2016, the Group
converted GBP13 million of its cash balance to US Dollars in
preparation for the drilling of the Lancaster 205-/21a--7 pilot
well and the 205/21a-7Z horizontal well, and the foreign exchange
gain relates to the change in value of this USD balance.
5. Loss per share
The basic and diluted loss per share has been calculated using
the loss for the 6 months ended 30 June 2016 of GBP1,791,000 (30
June 2015: GBP3,193,000; 31 December 2015: GBP5,523,000). The loss
per share is calculated using a weighted average number of Ordinary
Shares in issue less treasury shares. For the period ended 30 June
2016 this amounts to 730,566,202 Ordinary Shares (30 June 2015:
632,117,123; 31 December 2015: 632,151,017. The loss per share for
the period ended 30 June 2016 was 0.25 pence (30 June 2015: 0.51
pence; 31 December 2015: 0.87 pence).
6 months 6 months 12 months
ended ended ended
30 Jun 2016 30 Jun 2015 31 Dec 2015
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
At start of period 176,012 177,308 177,308
Additions 1,792 1,450 2,903
Effects of changes to decommissioning
estimates (note 8) - - (4,199)
At end of period 177,804 178,758 176,012
----------- ----------- -----------
6. Intangible exploration and evaluation assets
Intangible exploration and evaluation expenditure comprises the
book cost of licence interests and exploration and evaluation
expenditure within the Group's licensed acreage in the West of
Shetlands.
The Directors have fully considered and reviewed the potential
value of licence interests, including carried forward exploration
and evaluation expenditure. The Directors have considered the
Group's tenure to its licence interests, its plans for further
exploration and evaluation activities in relation to these and the
likely opportunities for realising the value of the Group's
licences, either by farm-out or by development of the assets.
Further details relating to the Group's funding position is
included in note 3. The Directors have concluded that no impairment
is necessary at this time.
7. Trade and other payables
30 Jun 2016 30 Jun 2015 31 Dec 2015
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Trade payables 833 161 71
Other payables 362 71 78
Accruals 556 466 122
----------- ----------- -----------
1,751 698 271
----------- ----------- -----------
8. Decommissioning provisions
6 months 6 months 12 months
ended ended ended
30 Jun 2016 30 Jun 2015 31 Dec 2015
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
At start of period 3,221 7,281 7,281
Unwinding 30 69 139
Changes to decommissioning
estimate - - (4,199)
----------- ----------- -----------
At end of period 3,251 7,350 3,221
----------- ----------- -----------
The provision for decommissioning relates to the costs required
to decommission the suspended wells previously drilled on the
Lancaster and Whirlwind exploration assets. The expected
decommissioning cost for both assets is based on the Directors'
best estimate of the cost of decommissioning at the end of the
current licence term in 2019 discounted at 1.9% per annum. The
change to the decommissioning estimate in 2015 was due to a revised
approach to decommissioning the suspended wells in an integrated
campaign coupled with an underlying reduction in the rates charged
for oil field services.
9. Called up share capital
30 June 2016 30 Jun 2015 31 Dec 2015
GBP'000 GBP'000 GBP'000
Allotted, called up and fully paid
30 June 2016: 984,030,277 (30 June
2015: 633,112,533; 31 December
2016: 633,112,533) Ordinary Shares
of GBP0.001 each 984 633 633
------------ ----------- -----------
The Company does not have an authorised share capital.
On 21 January 2016 1,016,976 new Ordinary Shares were issued to
the Hurricane Energy plc Share Incentive Plan (SIP) at a
subscription price of GBP0.09 per share.
On 10 May 2016 347,245,265 new Ordinary Shares were issued to
Kerogen Capital and other institutional investors at a subscription
price of GBP0.15 per share. In connection with the fundraising, the
Group has issued warrants to Crystal Amber to subscribe for up to
23,333,333 new Ordinary shares at a price of GBP0.20 per share.
On 08 June 2016 2,655,503 new Ordinary Shares were issued to
Directors who held office during 2014 in partial settlement of the
2014 deferred bonus, at a market price at that date of GBP0.17 per
share, with the remainder of the deferred bonus settled via a cash
payment of GBP186,000.
10. Reconciliation of operating loss to net cash outflow from operating activities
6 months 6 months 12 Months
ended ended ended
30 Jun 2016 30 Jun 2015 31 Dec 2015
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Operating loss (2,910) (3,084) (5,448)
Adjustments for:
Depreciation of property, plant
and equipment 25 41 82
Equity shares to be issued - (5) (5)
Share based payment charge 936 1,433 2,764
----------- ----------- -----------
Operating cash outflow before
working capital movements (1,949) (1,615) (2,607)
Decrease / (increase) in receivables (842) 418 1,113
(Decrease) / increase in payables 722 (670) (1,058)
----------- ----------- -----------
Cash used in operating activities (2,069) (1,867) (2,552)
----------- ----------- -----------
Corporation tax paid - - (6)
----------- ----------- -----------
Net cash outflow from operating
activities (2,069) (1,867) (2,558)
----------- ----------- -----------
11. Subsequent events
On 6 July 2016 the Group announced that the Lancaster 205/21a-7
Pilot well had been spudded. Following that, on 9 September 2016,
the company announced the interim results of this well.
The drilling of the sidetrack Horizontal Well has now kicked off
and the results of this well will be reported in due course.
Further refinement of the Pilot Well data should lead to a further
update towards the end of the year.
See the Chief Executive's Report for further details.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BRGDCIDDBGLB
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