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Hurricane Energy issues warrants as it commits to long lead items for Lancaster field production

Published: 07:31 12 May 2017 BST

Hurricane Energy CEO, DR Robert Trice onboard offshore drilling rig
Proceeds will help preserve the 'optionality' over the timing and choice of funding route, says CEO Robert Trice.

Hurricane Energy Plc (LON:HUR) has set up a potential source of new finance, with the issue of warrants to its joint broker Stifel Nicolaus.

The UK offshore oiler is issuing warrants for the potential subscription of 25mln new shares, exercisable at a price equating to 95% of the volume weighted average price the day prior to the trading day.

It comes as the company is committing to long lead items for the Lancaster discovery’s early production system (EPS). The orders allow the company to maintain the targeted timetable, which sees first oil in 2019.

Existing cash resource will cover the items though the company said the warrants provide a source of financial flexibility.

Hurricane is working towards a final investment decision for the project by the end of the first half or early in the second half.

"We are pleased to have issued the warrants to Stifel, our joint corporate broker,” said Dr Robert Price, Hurricane chief executive.

“We believe that the structure of the warrant Issue provides the company with access to a flexible working capital funding structure which would not be available through other means of financing.

“We expect that any proceeds raised will help preserve the company's optionality over the timing and choice of funding route and will strengthen the company's hand in discussions with counterparties. 

“This demonstrates the board's confidence that the company's work on the EPS development remains on track according to the current timetable."

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