Hurricane Energy PLC - GWA Joint Venture Agreements Update
("Hurricane" or the "Company")
GWA Joint Venture Agreements Update
As part of the farm-in announced on
As the Phase 2 final investment decision has not been taken, Phase 2 of the 2018 Farm-in has not commenced. All costs incurred in excess of the
The GWA Joint Venture has now agreed a new cost allocation agreement to update the terms of the 2018 Farm-in. Under the amended terms:
· The GWA Joint Venture will build-out the equipment and materials required to tie-back a single well from the GWA to the Aoka Mizu FPSO on a 50:50 basis with an additional net cost to Hurricane of
· Hurricane can elect to continue to build-out long-lead items related to the tie-in of the Aoka Mizu FPSO to WOSPS on a sole basis, at a cost of approximately
· While Hurricane has no current plans to proceed with the WOSPS installation, in the event that a decision is taken in future to proceed, subject to the required approvals and consents:
o Hurricane would bear 100% of the associated costs currently estimated to be in the region of
o Hurricane would reimburse Spirit for related gas export past costs up to
· If at any time Phase 2 is approved and a GWA tie-back to the Aoka Mizu FPSO proceeds, Hurricane will benefit from the original terms of the 2018 Farm-in through retrospective application of the carry in the proportions originally agreed.
The above cost estimates remain subject to further refinement and contract.
Dr Robert Trice, Chief Executive of Hurricane, commented:
"These amendments to our arrangements with Spirit give us greater optionality relating to gas export, whilst preserving the carry value of the Spirit farm-in in the event that the GWA joint venture partners proceed with a GWA tie-back in the future.
"In addition, the Lancaster EPS is currently producing at 20,000 barrels of oil per day and I look forward to providing an update at the Capital Markets Day on
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Joint Corporate Broker
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Patrick d'Ancona /
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Hurricane was established to discover, appraise and develop hydrocarbon resources associated with naturally fractured basement reservoirs. The Company's acreage is concentrated on the
Floating production storage and offloading vessel
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