Hurricane Energy made a post-tax profit of £700,000, it was confirmed in its annual report today.
The operator, which was founded to discover, appraise and develop hydrocarbons in fractured basement reservoirs, ended 2016 with £82.2million in cash.
Hurricane went to the markets to raise cash in both May and November 2016.
Chairman Robert Arnott today revealed plans to raise additional funds this month for the Lancaster Early Producitn System (EPS).
Arnott said: “I am delighted that with project maturity the operating costs have reudeces such that the porject remains robost under most foreseeable oil price scenarios. The downturn in the industry and consequent reduction in the cost base has also helped focus service providers to support Hurricane.”
Earlier this year, Hurricane opened its dataroom to a limited number of high quality participants to attract an industry partner in to some of all of the group’s assets.
“The farm-out process has principally focused on financing the EPS phase of the development of Lancaster, along with the potential for a wider appraisal programme,” according to the report.
The total forecast capital costs for EPS is $467million.
Hurricane acreage is concentrated on the Rona Ridge, West of Shetland. It’s Lancaster licence has a combined 2P and 2C resources of 523 million barrels. Hurricane also has 205 million barrels under its whirlwind licence.
Last year, it made “significant discoveries” the Halifax and Lincoln, which Hurricane has said indicates the Greater Warwick Area and Greater Lancaster Area have the potential to be two large accumulations.