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Oil & Gas

Hurricane Energy whittles away at bond debt ahead of July deadline

The troubled offshore UK oiler has bought back US$43.5mln of convertible bonds this week, leaving US$108.5mln due in 2022

Hurricane Energy PLC (LSE:HUR) bought back a further US$28.5mln of convertible bonds as management whittles away at the debt due in 2022.

It is paying US$27.3mln including accrued interest for the convertible bonds.

Following the latest purchase there are some US$108.5mln of bonds outstanding, that carry 7.5% interest and mature in July.

On Wednesday, Hurricane announced a repurchase of US$15mln of bonds - paying US$14mln – which moved the outstanding bonds down from US$152mln.

"The net savings from the bond repurchases over the past week have been of significant benefit to the company,” said Antony Maris, Hurricane chief executive.

“We will continue to take advantage of the volatility in the oil price and the economic indicators, and any inbound offers from the holders of the Bonds, to reduce further our outstanding debt, whilst maintaining an appropriate cash position.”

Maris added: “While bridging any funding gap for the repayment of the bonds remains a challenge, we will continue to look at all the options available to us to meet our debt repayment obligations and maximise the value of our assets."

Hurricane continues to produce and sell oil from the Lancaster which has failed to live up to high expectations in recent years.

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