LONDON, June 15, 2015 /PRNewswire/ --
Edison Investment Research, a leading international investment research firm, announces the initiation of full coverage of Hurricane Energy
Highlights of the analysis on Hurricane Energy by Edison's oil and gas analysts Kim Fustier, Elaine Reynolds and Ian McLelland are as follows:
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Hurricane is an E&P focused on UKCS fractured basement exploration. It owns 100% in three licences, including the 207mmboe Lancaster discovery where it drilled an appraised well in 2014. It is currently engaged in a farm-out process to fund an Early Production System (EPS).
Hurricane Energy is an E&P company focused on fractured basement in the UK, where it has de-risked its 207mmboe Lancaster field with a successful horizontal appraisal well (flow rates of c 10mb/d constrained by surface equipment). Management is now envisaging an Early Production System to answer remaining uncertainties and reduce upfront capital requirements. The company is currently seeking a farm-out to fund an EPS, targeting first oil in late 2017, with full field production five years later. While the farm-out market is currently subdued, Lancaster may attract interested parties due to its high well deliverability and relatively simple development scheme. Furthermore, success at Lancaster could lead to a wider de-risking of basement plays - opening up a much larger resource base. In these circumstances, our RENAV of 45p/share could have considerable upside, although we note that the terms of the farm-down and performance of any EPS are critical.
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About Edison: Edison, the investment intelligence firm, is the future of investor interaction with corporates. Our team of over 100 analysts and investment professionals works with leading companies, fund managers and investment banks worldwide to support their capital markets activities. We provide services to more than 400 retained corporate and investor clients from our offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority (http://www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584).
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For more information please contact:
Kim Fustier, Edison Investment Research, +44-(0)20-3077-5741
Elaine Reynolds, Edison Investment Research, +44-(0)20-3077-5713
Ian McLelland, Edison Investment Research, +44-(0)20-3077-5756
[email protected]
SOURCE Edison Investment Research
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