Hurricane Energy share price: what’s the latest as 2020 guidance raised?
The AIM-listed oil company saw its share price rally more than 20% last week, driven by an upgrade to its 2020 production guidance after recording positive results from its Scottish oil fields.
Hurricane Energy saw its share price climb more than 20% last week, driven primarily by positive production results from its Scottish oil fields on Thursday, allowing the oil company to increase its production guidance for 2020.
From 2020, target production guidance envelope is increased from 17,000 barrels per day (bpd), which remains the base case, to an upper target of 20,000 bpd, the company said in a recent operational update.
‘Looking ahead, we've updated our Lancaster EPS production guidance by adding an upside scenario from 2020 onwards, based on the many positive indications we've seen to date,’ Hurricane Energy CEO Robert Price said.
‘We are tracking in line with production guidance for 2019 and are generating significant cash for reinvestment in future activity,’ he added.
Hurricane Energy delivers on fractured basement play
The news last week not only boosted its share price significantly, but also highlighted the strength of its fractured basement strategy, which has seen the company look for crude in rock formations that its rivals don’t.
Last week’s announcement from ‘Hurricane is yet another step forward in demonstrating the deliverability of the fractured basement play in the UK North Sea on the Lancaster licence,’ RBC Capital Markets analyst Victoria McCulloch said in a note.
‘We continue to anticipate that 6-12 months of production data is required in order to fully understand the scale of the reservoir and sustainability of production, however this update and increase to 2020 guidance is very encouraging for investors,’ she added.
Hurricane Energy’s share price sits at 52p a share as of 10:00 GMT on Monday.
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