Hurricane Energy, North Sea operator (LON:HUR) is to conduct a planned shutdown of its flagship Lancaster field next month.
It follows the latest oil removal from Aoka Mizu’s floating production, offloading and storage (FPSO) vessel.
Oil production during the month totaled 258,000 barrels (Mbbls) and as of August 9, Lancaster was producing approximately 8,400 barrels of oil per day (bopd) from the P6 well alone.
The 30th shipment of Lancaster oil, totaling approximately 534 kb, was lifted on July 24.
Its price was set by reference to the last five-day average of Brent quotations dated July of $111 a barrel, resulting in net income of $60 million.
After clearing its last cargo, Hurricane will now make its scheduled annual shutdown in September.
The next round of oil will be lifted from the FPSO in October.
As announced in July, Hurricane has fully repaid its $78 million of 7.5% convertible bonds, along with $1.5 million of accrued interest.
This means that the struggling trader is now debt free.
As of July 31, it had net free cash of $89 million.
Hurricane is currently considering an M&A deal or a potential $250 million increase in West Shetland assets.
Now debt-free, the revitalized operator is looking to “identify the best way to optimize capital allocation,” the board recently told investors at its annual general meeting.
A potential new Lancaster producer — the P8 well — would add an additional 3 to 5 million barrels of reserves, with capital expenditures of $80 million to $90 million subject to the rig’s market, Hurricane told Reuters. AGM.