Been thinking about the RNS today. This is my take: The company is very sorry it has been unable to properly test the Lancaster wells as per previous guidance, we have been unable to produce the expected 9600 barrels per day from June to end of August because we have a flowline problem, and we have only been able to use one flowline. As a result we cannot say whether Lancaster field will be long term commercially viable. In the meantime we have had to produce on average 14, 400 barrels per day from 6th June to 17th August, we apologise for producing 1.2 million barrels instead of the intended 740,000 barrels. end
So HUR expected $60m operational cash flow by end of 2019 but by 17th August HUR have generated $70m op cash flow! They must have been (on occasions because of shutdowns) producing around 20,000 bpd along one flowline from two wells! From 17th Aug to 31st December, we have 6 weeks at 9600 bpd and 90 days at over 13000 bpd, average 11,000 bpd, say 1.4m barrels at $60 giving around $84 million. H1 end $81 m cash, including $22m from first cargo, so $132 m operating cashflow generated H2 2019. HUR commitments ongoing and 2020, debottlenecking and GWA tie back and gas tie back $47m . 3x GWA wells 2020 $95 m total $142 m. So HUR will easily be able to cover existing commitments in 2020 and I would suggest have plenty of cash to undertake further drilling on GLA in 2020.
I think Dr T is taking the mickey out of the market and the industry here.