Annual Report and Group Financial Statements 2022
Hurricane was established to discover, appraise and develop hydrocarbons from naturally fractured basement reservoirs
Our assets
P2308
Halifax 205/23-3A
P1368(C)
LANCASTER
P1368(S)
LINCOLN
WARWICK
CREST
N
P2294 | ||||||||||
0 | 5 | 10km |
The Warwick P2294 licence area and the Lincoln P1368(S) licence sub area were relinquished in July 2022. The Halifax P2308 licence was relinquished in February 2023.
Key figures
Revenue
From 6 cargoes
$311 million
Free cash flow†
Equivalent of $57 per barrel during 2022
$176 million
Statutory profit after tax
$109 million
Production
Average daily rate
8,500 bopd
Crude oil sales
Across 6 cargoes
3.2 MMbbl
Net free cash† at 31 December 2022
$121 million
Strategic Report
- Highlights
- Chairman's Statement
- Chief Executive Officer's Review
- Strategy and Business Model
- Stakeholder Engagement
- Section 172
- Chief Financial Officer's Review
- Going Concern
- Principal Risks and Uncertainties
29 Environmental, Social and Governance Report
Corporate Governance
- Board of Directors
- Governance Report
- Audit and Risk Committee Chair's Report
- Nominations Committee Chair's Report
- Directors' Remuneration Report
- Directors' Report
Financial Statements
63 Independent Auditor's Report
- Group Statement of Comprehensive Income
- Group Statement of Financial Position
- Group Statement of Changes in Equity
- Group Cash Flow Statement
- Notes to the Group Financial Statements
- Company Statement of Financial Position
- Company Statement of Changes in Equity
- Notes to the Company Financial Statements
- Advisers
- Appendix A: Glossary
- Appendix B: Non-IFRS Measures
- Notes
STRATEGIC REPORT
Throughout this report, '†' indicates a non-IFRS measure, which management believe is useful in providing additional information on performance and trends. Definitions and reconciliations to the nearest equivalent IFRS measure are provided in Appendix B.
Annual Report and Group Financial Statements 2022 | 1 | |
STRATEGIC REPORT
Chairman's Statement
Philip Wolfe
Chairman
Dear Shareholders,
I am pleased to present the 2022 annual report for Hurricane Energy, the first year of my chairmanship.
2022 was a busy and important year for Hurricane, and 2023 to date has been transformational
for the Company, as we hope to complete the recommended acquisition of Hurricane by Prax Exploration & Production PLC (Prax) (a wholly- owned subsidiary of State Oil Limited) imminently.
The terrible events in Ukraine provided a volatile backdrop for the energy sector throughout 2022, with sharp movements in commodity prices and an enhanced focus on security of energy supply. The imposition by the UK government of the Energy Profits Levy only added to the sense of instability for the sector.
Operationally and commercially 2022 was a strong year for the Company. Production averaged 8,500 bopd from the Lancaster field with uptime of 97%. In July 2022 we were able to pay off our outstanding Convertible Bonds, as a result of the excellent operational performance at the field, combined with strong oil prices. In May we welcomed Linda Beal to the Board, followed shortly thereafter with Robin Allan joining us in July. Both joined as Independent Non-Executive Directors, and have contributed superbly to our discussions since their arrivals in what has been a busy time for the Board.
Having repaid our debt and established a firmer footing, the Company considered its options in terms of increasing production at Lancaster. However, despite many months of engagement we did not receive the requisite comfort from the regulator, the NSTA, required for the very material investment proposed.
In November 2022, following the receipt of an unsolicited bid for the Company valuing each share at 7.7p which the Board concluded should not be recommended to shareholders, and with our largest investor, Crystal Amber, being clear that they wished to monetise their holding in Hurricane and would not support an investment-led growth strategy, the Board launched a Formal Sale Process.
This thorough and exhaustive process culminated in the Board recommending an offer from Prax. Should the Scheme be sanctioned by the Court, I believe Hurricane has an exciting future as part of the wider Prax organisation.
During what has been an exciting but also challenging period, I would like to thank our staff, the Board and our advisors for their continuing hard work during a particularly busy and uncertain time for the Company.
Philip Wolfe
Chairman
25 May 2023
2 | Hurricane Energy plc | |
STRATEGIC REPORT
Annual Report and Group Financial Statements 2022 | 3 | |
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Hurricane Energy plc published this content on 01 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 June 2023 09:01:07 UTC.