West of Shetlands, Hurricane Energy struck a second money-saving deal in quick succession after facing challenges amid the downturn triggered by the pandemic.
The company said it had purchased $ 28.5 million bonds for a down payment of $ 27.3 million. The purchase of the bonds from investment bank Stifel Nicolaus Europe will result in net savings in debt repayment and interest charges of US $ 2.8 million.
Hurricane said on Wednesday it had bought back $ 15 million in bonds for $ 14 million, generating a net savings of $ 1.8 million.
Managing Director Antony Maris said yesterday: âThe net savings resulting from bond buybacks over the past week have been a significant benefit to the company. ”
The purchases leave $ 108.5 million in bonds outstanding. These must be repaid next year.
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Surrey-based Hurricane sparked excitement by making discoveries in a relatively under-explored rock layer off the Shetlands. The company put the Lancaster discovery into production in 2019. After encountering problems with a well on Lancaster, Hurricane lowered estimates of how much oil was in the discovery and others it had made.
Hurricane revenues plummeted after the coronavirus crisis caused oil prices to plummet.
In June, the High Court blocked a proposed debt-for-equity swap that would have left creditors in control of the business. Directors had said restructuring was the only realistic option open to the company.
The outlook has improved for Surrey-based Hurricane amid rising oil prices in recent months. This has been fueled by hopes that the global economy is on the road to recovery following the rollout of coronavirus vaccines.
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Brent crude sold for $ 74.96 a barrel yesterday afternoon, up $ 0.54 / bbl on the day. The price fell to its lowest level in 18 years, to less than $ 20 a barrel, in April of last year.