Listing and Governance Committee Update

RNS Number : 0668C

Hurricane Energy PLC

17 January 2018

 

17 January 2018

Hurricane Energy plc

("Hurricane" or the "Company")

Listing and Governance Committee Update

Hurricane Energy plc, the UK based oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, provides a corporate governance update, following further progress in the work of the Company's Listing and Governance Committee ("LGC").  

The Company previously announced that it was considering application for admission of its ordinary shares to a premium segment of a recognised stock exchange ("Premium Listing"). On the recommendation of the LGC, the Company is therefore transitioning its corporate governance policies and procedures towards best practice, benchmarked against those of a premium listed business. This includes compliance with the UK Corporate Governance Code (the "Code"), a standard not required of AIM-quoted companies.

As announced on 7 December 2017, Spencer Stuart, a leading executive search firm, is working for the Company to source a new non-executive Chairman. This process continues and the Nominations Committee will provide an update once an appointment has been made. Following the Chairman's appointment, the Company will seek to appoint additional independent non-executive directors, such that the Board becomes compliant with Provision B.1.2. of the Code. Such appointments will be made with input from the new Chairman.

To affirm their independence under the provisions of the Code, Dr David Jenkins and John van der Welle have relinquished, for nil consideration, the awards previously granted to them under Hurricane's non-executive director share option plan. The Company confirms that it does not plan to make share incentive awards to non-executive directors in the future. Dr Jenkins is currently acting as Interim Chairman and will therefore only be deemed independent upon appointment of the new Chairman.

The Board has also reconstituted membership of its Audit and Risk, Remuneration and Nominations committees. The updated terms of reference for the committees are available on Hurricane's website, www.hurricaneenergy.com. Upon appointment of the new Chairman, these committees are expected to be compliant with the relevant provisions of the Code and align with best market practice, for a company of Hurricane's size. Corresponding updates have been made to the Relationship Deed dated 18 April 2016 between the Company and its largest shareholder, Kerogen Investments No.18 Limited.

As Hurricane continues to enhance its corporate governance and consider a potential future application for a Premium Listing, the Company is planning to carry out a corporate governance roadshow with investors and proxy advisers to discuss the changes. These meetings, coordinated by Boudicca Proxy, will take place over the coming weeks and provide an opportunity for consultation with stakeholders on the developments taking place.

John van der Welle, Chairman of the LGC, commented:

"I am pleased to report that Hurricane's corporate governance practices continue to be enhanced based on recommendations of the Listing and Governance Committee. We look forward to discussing our plans for further changes with major shareholders on the upcoming corporate governance roadshow as we transition our disclosure, reporting and corporate governance standards towards best practice, commensurate with a Premium Listed business."

Contacts: 

Hurricane Energy plc	Dr Robert Trice (Chief Executive Officer)/ Alistair Stobie (Chief Financial Officer)	[phone]
Stifel Nicolaus Europe Limited	Nominated Adviser and Corporate Broker Callum Stewart/Nicholas Rhodes/Ashton Clanfield	[phone]
Vigo Communications	Public Relations Patrick d'Ancona/Ben Simons	[phone] [e-mail]

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 field, the Company's most appraised asset, has combined 2P Reserves and 2C Contingent Resources of 523 million stock tank barrels of oil. The Company is currently proceeding towards the first phase of development of Lancaster, an Early Production System, with first oil targeted for 1H 2019.

During the 2016-2017 drilling campaign, the Company made two significant discoveries* at Halifax and Lincoln. Together, these discoveries* have 2C Contingent Resources of 1,839 million barrels of oil equivalent.

Hurricane's other assets include Warwick, which has best case Prospective Resources of 935 million stock tank barrels of oil, Whirlwind, which has 2C Contingent Resources of 205 million barrels of oil equivalent (under the Whirlwind oil case) and Strathmore, which has 2C Contingent Resources of 32 million stock tank barrels of oil. Together, this brings Hurricane's total combined 2P Reserves and 2C Contingent Resources to 2.6 billion barrels of oil equivalent.

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

Inside Information

The content of this announcement does not comprise price sensitive information.

 

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