Hurricane Energy share price edges lower despite first revenues in half-year results

The British oil company released its first financials to include revenue on Friday thanks to its Lancaster start-up.

Hurricane Energy released its half-year results on Friday morning and are the oil company’s first set of financial to include revenue.

The company has sold more than 1.6 million barrels of oil across four cargoes thanks to its Lancaster start-up operation producing an average of 14,100 barrels of oil a day, Hurricane Energy CEO Robert Trice said.

‘Achieving first oil on schedule and on budget is a remarkable achievement and a huge credit to our operating team, our partners and contractors,’ Trice said.

Despite publishing its first set of financials to include revenue, Hurricane Energy saw its share price slide as much as 4% on early morning trading on Friday, with the stock sitting at 46.56p a share as of 10:20 GMT.

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Hurricane Energy results: key figures

Over the last six months of trading, the company recognised revenue for the first time relating to a single cargo of crude oil sold, resulting in the business recording an operating profit of $1.2 million, compared to a loss of $4.7 million in the same period last year.

Hurricane Energy recorded a loss after tax of $21.2 million in its latest set of financials, a marked improvement from the $75.1 million it recorded this time last year.

Lancaster reservoir exceed expectations

Hurricane Energy’s latest set of results provide it with financial security gained from production from its Lancaster field’s early production system (EPS) and has given insight to the company on how it will develop future sites like its Rona Ridge resource.

‘Throughout the start-up phase and following first oil, the reservoir has performed at the higher end of expectations. However, we remain cognisant that it will take at least six months of steady state production before we are able to evaluate the validity of our reservoir model,’ Trice added.

Looking ahead, Hurricane Energy expects its Lancaster EPS to generate full-year production of over 2.8 million barrels of oil. Meanwhile, its third well at its Warwick West development is due to be spudded later this year.

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