Hurricane Energy PLC (LSE:HUR) has received multiple proposals from credible counterparties in its formal sales process, which had a 7 January deadline for indicative proposals.
The British offshore oiler, in a statement, added that it also received a number of less-defined expressions of further interest.
It highlighted that all submissions are highly conditional and subject to further due diligence. Additionally, it told investors that each proposal contained structured elements that require further clarification and assessment by Hurricane and its advisers.
The process is now ongoing, meanwhile, the company added that it intends to provide an update by tomorrow (12 January) regarding the EGM requisition made by its largest shareholder Crystal Amber Fund Limited (AIM:CRS), which in a recent statement called for an ousting of the current board.
Hurricane chief executive Antony Maris today said: “We continue our work on the FSP which we are focused on bringing to a successful conclusion, albeit there can be no certainty as to its outcome.
“We are pleased by the strong interest we have seen thus far.
“This coming year brings its own challenges and we look to deliver both near-term shareholder returns through either the successful outcome of the formal sale process or with a substantial capital return programme, as well as creating additional value for our shareholders."
In terms of its operations, Hurricane reported production of 7,800 bopd as of 9 January 2023, reflecting a continuing decline from the Lancaster field which presently produces from just one of its wells and continues to suffer the constraint of high water volumes (at around 50% water cut, it brought up 251,000 barrels worth of water in the month of December).
A 544,000 barrel shipment of crude was lifted on 5 December 2022, Hurricane confirmed, and it added that the next shipment to be sent for sale is expected in mid-February.
In 2022, a total of six cargoes were sold for a total of 3.2mln barrels of crude. Production for the year amounted to 3.1mln barrels, or 8,464 bopd.
Hurricane said it ended December with US$122mln of cash, inclusive of revenue from December’s crude sale.
Looking to 2023, the company set production guidance for the calendar year at 5,900 to 7,100 bopd – assuming 96.5% uptime for its floating production vessel and including planned maintenance slated for the third quarter.