Hurricane Energy yesterday insisted it had the “continued support” of Kerogen despite the private-equity firm selling about a quarter of its shares in the oil company.
London-listed Hurricane said Kerogen was still a major shareholder with a 16% interest and a nominated representative on its board.
Kerogen earlier announced the sale of 110 million ordinary shares at a price of 46.5p each.
Hurricane’s shares were down 6.93% at 47p yesterday.
Its shares did trade at less than 10p each in January 2016, when the recent downturn hits its nadir, with Brent crude dropping below $30 per barrel.
The company started drilling its Lincoln Crestal well west of Shetland last week as part of a three well campaign for 2019.
It drilled the Warwick Deep well previously, but it proved not to be commercial.
The firm made a huge breakthrough earlier this year when it achieved first oil from its flagship Lancaster field.
However, Hurricane’s chief financial officer Alistair Stobie has warned that medium-sized oil companies were finding it more difficult to secure investment as fund managers’ attitudes to fossil fuels worsen.
Kerogen, which has bases in London and Hong Kong, initially invested in Hurricane in 2016.
A year earlier, it backed fellow-North-Sea-focused Zennor Petroleum.