Update Regarding Proposed Pre-emptive Offering

RNS Number : 8196M

Hurricane Energy PLC

02 August 2017

 

2 August 2017

Hurricane Energy plc

("Hurricane" or the "Company")

Update Regarding Proposed Pre-emptive Offering

Hurricane Energy plc, the UK-based oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, provides an update on the proposed pre-emptive follow-on offering to all shareholders.

As previously announced, in connection with the Company's recently completed US$530 million fundraising ("Fundraising"), the Company planned to pursue a pre-emptive offer to all shareholders on the register at close of business on 29 June 2017, ("Shareholders") to raise up to US$5 million at the Fundraising placing price (the "Pre-emptive Offer"), being 32 pence per share (the "Offer Price"). It was not practical to incorporate a Pre-emptive Offer as part of the Fundraising, primarily because such a Pre-emptive Offer requires a prospectus to be approved by the United Kingdom Listing Authority, the timing of which was not compatible with final investment decision for the early production system at the Company's Lancaster field in summer 2017.

The Pre-emptive Offer was designed to provide Shareholders with the opportunity to subscribe for shares at the Offer Price. Since completion of the Fundraising on 24 July 2017, Shareholders have been able to purchase shares in the open market at below the Offer Price. The Directors do not believe it is a productive use of Company funds or management time to proceed with the Pre-emptive Offer should the Company's shares continue to trade below the Offer Price. Therefore, should the volume weighted average price of the Company's shares remain at or below the Offer Price over the 5 trading days from the date of this announcement, no Pre-emptive Offer will be pursued.

Contact Details:

Hurricane Energy plc	[phone]
Dr Robert Trice (Chief Executive Officer) / Alistair Stobie (Chief Financial Officer)
Cenkos Securities plc	[phone]
Nominated Adviser, Joint Broker
Nick Tulloch / Derrick Lee / Beth McKiernan
Stifel Nicolaus Europe Limited	[phone]
Joint Broker
Callum Stewart / Nicholas Rhodes / Ashton Clanfield
Evercore Partners International LLP	[phone]
Financial Adviser
Gent Kadare / Jim Renwick
Vigo Communications	[phone]
Public Relations Adviser	[e-mail]
Patrick d'Ancona / Ben Simons

About Hurricane

Hurricane was established to discover, appraise and develop hydrocarbon resources associated with naturally fractured basement reservoirs.

Hurricane's acreage is concentrated on the Rona Ridge, West of Shetland.  The Lancaster licence, the Company's most appraised asset, has combined 2P Reserves and 2C Resources of 523 million barrels.  In addition, the Company has 205 million barrels of oil equivalent on its Whirlwind licence (under the Whirlwind oil case).

During the 2016-2017 drilling campaign the Company made two significant discoveries* at Halifax and Lincoln, indicating that the Greater Lancaster Area and the Greater Warwick Area have the potential to be two large accumulations.

*Discovery - This classification is consistent with SPE/AAPG/WPC and SPEE guidelines for Petroleum Resource Management - Determination of Discovery Status

 

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