Hurricane Energy (LON: HUR) has reached a “key milestone” paying off more than $78.5m in convertible bonds to its lenders.
The repayment marks a huge turnaround in fortunes for the firm, whose future looked uncertain 12 months ago.
Around that time it was looking at having to repay a total of $230m to bondholders, with limited cash on hand.
But the surge in Brent Crude oil – up from $40 in July 2021 to more than $100 – has changed its fortunes.
CEO Antony Maris emphasised the importance of the bonds breakthrough for Hurricane, and discussed future opportunities.
“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.
“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.
“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.”
Shares in Hurricane Energy are trading at 7.2pence.