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Malcy's Flash Blog on Hurricane Energy

09:47, 20th September 2019
Malcys Blog
Malcy's Blog
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Normally I suggest that Interims are history and accordingly of little interest, on this occasion I think that if I said that the CFO would have my guts for garters. As he himself said at the conference call these are the first interims with any relevance.

As I am travelling at present this blog will be short due to internet stuff but will try to add more detail in due course. The best news is that the company has over 14/- b/d of production which adds over 1.6m barrels of oil which in the interim period gave an operating profit of $1.2m . Finally at Lancaster the overall system availability in the EPS has exceeded long-term guidance of 85%.

The rig has moved to Warwick West and will spud soon. Any success here would hopefully link to the gauge left in the Lincoln Crystal well but it should be borne in mind that due to some operational delays the programme is running a little late and that drilling and testing will be carried out in the latter part of the year where foul weather may have some bearing on the timing.

The company are rightly urging the usual caution about the long term nature of the Lancaster programme and that it will take at least six months of steady state production ‘before we can evaluate the validity of our reservoir model’.

Hurricane continues to deliver the goods and whilst some metrics inevitably change it looks to me as if critics may be struggling to deny the existence and deliverability of the fractured basement concept.

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