Hurricane Awarded New Blocks in 28th Round

RNS Number : 3638U

Hurricane Energy PLC

29 July 2015

 

Embargoed: 0700hrs, 29 July 2015

Hurricane Energy plc

("Hurricane" or the "Company")

Hurricane Awarded New Blocks in 28^th Offshore Licensing Round

Hurricane Energy plc, the UK-based oil and Gas Company focused on hydrocarbon resources in naturally fractured basement reservoirs, is pleased to announce that the Company has been successful in its applications for two further West of Shetland blocks in the Oil and Gas Authority's 28^th Offshore Licensing Round Second Tranche of Offers.

Hurricane's applications for blocks 204/30b and 205/26d were based both on the identification of a new basement prospect - provisionally named Warwick - which is considered to be analogous to the Company's Lancaster basement discovery; as well as on the additional prospectivity offered from the extension of the Company's Lincoln prospect into block 204/30b.

Dr Robert Trice, Chief Executive, commented:

"While our immediate focus is on achieving an early production system on our Lancaster discovery, Hurricane's longer term strategy remains the delivery of the UK's basement play. I am therefore delighted that Hurricane has been offered these two new blocks in which we have identified material basement prospectivity which is analogous to our substantial Lancaster discovery. Our work commitment on these licences is a 'drill or drop' on either of the identified prospects which, following the implementation of a successful Lancaster early production system, provides Hurricane with the potential for further high value, relatively low-risk, near-field exploration."

Contact Details:

Hurricane Energy plc	Dr Robert Trice Chief Executive Officer	[phone]	[e-mail] www.hurricaneenergy.com
Cenkos Securities plc	Derrick Lee Nick Tulloch	[phone]	[e-mail] [e-mail]
Media enquiries: Vigo Communications	Patrick d'Ancona Ben Simons	[phone] [phone]	[e-mail]

Notes for Editors:

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 and has successfully found oil on the UKCS. The Company has 444-470 Mmboe of 2C Contingent Resources and 432-442 Mmboe P50 Prospective Resources on acreage it controls 100% under licences P1368, P1485, P1835 and P1884.

The Group completed an IPO on the AIM market on 4 February 2014.

Strategy and Focus

The Group's primary objective is to increase shareholder value through the exploration, appraisal and development of fractured basement reservoirs. The Directors' strategy to achieve this is as follows:

1) Concentrate on basement in proven petroleum systems

To date, the Group's basement exploration approach has been to focus on areas where oil had been found in basement structures by previous operators but not progressed on the basis that the prevailing opinion at the time was that such discoveries were not commercial. Once such potential areas have been identified, the Group undertakes a high grading process involving the evaluation of existing geotechnical data to establish if, and where, suitable prospects may be present.

The Directors believe this approach serves to reduce exploration risk on basement prospects by ensuring a working hydrocarbon system is present and by having available a comprehensive geotechnical database (both seismic and well data).

2) Regional focus on West of Shetland

Hurricane has established an attractive portfolio of exploration and appraisal projects, focused on fractured basement prospectivity West of Shetland. The Directors believe that the potential scale of the recoverable resource within these fractured basement reservoirs presents the UK oil and gas industry with a significant opportunity to access a material new strategic asset.

3) Ownership and operatorship during exploration and early stage appraisal

Hurricane has maintained 100% ownership and operatorship of all of its assets to date. The Directors believe that this puts the Company in a strong position to invite other industry participants to participate in the assets and share costs, in preparation for field development that will lead to producing assets.

4) Maintain an influential equity position

As Hurricane progresses the Group's assets towards development it intends to seek potential partners through a farm-out or other process to assist in future development and implementation of the FDP whilst maintaining an influential equity position.

5) Opportunities to acquire exploration licences in existing and new regions

Hurricane intends to participate in applications for new licence areas where the Group will be able to apply its technical expertise in basement reservoir evaluation to create value for its shareholders. The Directors believe that the Group's skill set and its track record to date leave it well positioned to secure further licences in countries with low geopolitical risk.

 

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