StockMarketWire.com - Oil and gas company Hurricane Energy reported wider first-half losses as writedowns related to its Lancaster field offset a jump in revenue.

For the six months ended June, the company reported an underlying pre-tax loss of $40.2m compared to a profit of $4m on-year, even as revenue increased to $81.9m from $22.5m.

Profit took a $238.9m hit from writedowns related to the impairment of the Lancaster field, which is located in waters north of Scotland.

Following a new technical review, the company estimated recovery from the two existing Lancaster early production system wells had been reduced to 16.0m barrels, down from 37.3m barrels.

The Lancaster oil water contact was now estimated at 1,330 metres, compared to the range of 1,597-1,678 metres previously estimated in 2017.

'Our near-term priority is further technical work to refine an activity plan for Lancaster, which we expect to be finalised by the end of this year and executed in 2021,' Hurricane Energy said.

Looking ahead, the company said Lancaster EPS production for September to December 2020 was expected to average 12,000-to-14,000 barrels of oil per day, based on production from the 205/21a-6 well on natural flow, expected decline rates and 95% FPSO uptime.

'Lower oil prices and reduced production expectations will negatively impact anticipated future cash flows, despite the expected reduction and deferral of licence commitment well spending,' it added. At 8:01am: [LON:HUR] Hurricane Energy PLC share price was -0.68p at 5.62p



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