Hurricane Energy losses widen ahead of first production

20th Sep 2018 10:22

(Sharecast News) - Hurricane Energy took a sizeable paper loss in the first half of its trading year ahead of first production pencilled in for the first half of next year.The AIM-listed firm's losses expanded from $4.2m to $75.1m, which included a non-cash fair value loss on the embedded derivative element of a $70.2m convertible bond. Excluding the fair value loss, the loss for the period was $4.9m.In fact operating expenses were narrowed 21% to $4.7m.Hurricane said it was awaiting sea trials on its Aoka Mizu FPSO vessel, currently in the final stage of upgrades at its Dubai factory, to be wrapped up soon. Elsewhere, Hurricane revealed that Spirit Energy had farmed-in to the greater Warwick area - made up of the Lincoln and Warwick fields. The group said the move had significantly accelerated development of the field, with Spirit now funding 100% of the three well drilling programme, up to a maximum of $180.6m.Hurricane chief executive Dr Robert Trice said: "During the first half of 2018, Hurricane has been focussed on the Lancaster early production system development.""I am delighted to report that operations have progressed to plan and within budget, allowing us to reiterate our first oil guidance of H1 2019."As of 1015 BST, Hurricane shares had picked up 2% to 54.59p.