Hurricane Energy PLC (LSE:HUR) has confirmed the complete payment of its outstanding bonds, clearing a major obstacle to its growth prospects.
The company, in a statement, told investors it paid off the US$78.515mln of convertible bonds, plus US$1.5mln of accrued interest before the maturity date (24 July).
It leaves the company debt free with significant cash on hand, Hurricane said, whilst noting that a further injection of cash is due with an imminent lifting of crude from the Lancaster field’s floating production, storage and offloading (FPSO) vessel. With the debt cleared, the company is now assessing options to grow.
"The repayment of the convertible bonds is an important and key milestone for Hurricane as we move into a new phase for the company, focusing on building a long-term future for the business and creating additional value for our shareholders,” said Antony Maris, Hurricane chief executive.
“The excellent operational performance of the Lancaster field, for which I pay a huge tribute to our whole team, combined with high oil prices has underpinned the establishment of a strong financial platform for the company.”
“We continue our work to identify the most effective capital allocation opportunities both within and outside of our existing asset base, and which best fit within our growth plans in the context of both our own and the UK's transition goals.”
Maris added: “I believe that Hurricane going forward is attractive to investors and well positioned to look for new growth opportunities.
“Our focus is on creating value for shareholders and we are being very rigorous in assessing which opportunities will best deliver that."