Hurricane Energy launches $230m convertible bond tender offer

Oil company Hurricane Energy has launched a tender offer to repurchase as much as $230.0m worth of convertible bonds due in 2022 using a portion of its current cash balances.

Hurricane said on Tuesday that it was inviting holders of the convertible bonds, due in 2022, to tender the bonds for purchase for cash.

The AIM-listed group stated the purpose of the offer was to utilise a portion of its available cash balances to purchase the bonds prior to their maturity as part of "a proactive liability management exercise" on its outstanding debt.

Hurricane added that the offer would also provide "liquidity and certainty of outcome" to those holders whose bonds were accepted in the offer, given the range of future dynamic factors and uncertainties which were outside of its own control.

Separately, Hurricane also noted that its P6 well in the Lancaster oil field was now producing 11,100 barrels of oil per day and also noted that it would book an accounting gain of $48.0m after refusing to extend the current lease of the Aoko Mizu vessel up to 2025.

As of 0935 BST, Hurricane shares were up 2.98% at 2.42p.