30 Jun Hurricane Energy looks to raise $520 million for North Sea drilling
North Sea-focused oil firm Hurricane Energy (AIM:HUR) is planning to attain US$520 million for test drilling at its Lancaster oil field through a fundraising programme.
The proposed plans involve placing new shares worth 32p per share, which should raise a minimum of $300 million, as well as a $220 million convertible bond offering.
Last month Hurricane confirmed that the recoverable oil resources at the Lancaster field are 162% more than initial estimates in 2013, and believes the offshore site could be the UK’s largest undeveloped find.
The funds will be spent on an early production system (EPS), which will test the field in the West Shetlands region, ahead of a final investment decision.
Hurricane said the EPS is expected to produce 17,000 barrels of oil per day (bpd), with production set to commence in 2019.
A flurry of finds and projects coming online in recent times has breathed new life into the North Sea oil industry which was previously believed to have reached full maturity, with the Lancaster field a prime example of the revival in the region.