Hurricane Energy Deferred Consideration Unit -Payment
Hurricane Energy Deferred Consideration Unit Payment
29 September 2023: Prax Exploration & Production Plc is pleased to provide its first update to Deferred Consideration Unit (“DCU”) holders under the terms of the agreement dated 8 June 2023, based on the performance of Prax Upstream Limited (formerly Hurricane Energy Plc) and its subsidiaries (“Prax Upstream”) in the four month period from 1 March 2023 to 30 June 2023.
The DCUs confer an entitlement for holders to receive 17.5% of all future net revenues earned by Prax Upstream from 1 March 2023 until 31 December 2026, including from both the Lancaster Oil Field and from any acquisitions made by Prax Upstream, capped at a total of 6.48 pence per DCU (being c.£129.1 million in aggregate). The DCU payments will be paid biannually in arrears, approximately 90 days after the end of each 6 month period (those periods ending on 30 June and 31 December each year).
Production from the Lancaster Oil Field, the only producing asset currently in Prax Upstream, resulted in sales of 539,244 barrels of oil during the four months from 1 March 2023 to 30 June 2023.
Gross revenues for the period were $45,801,204.35, with net revenues being $43,903,875.95 after the related costs for transportation, freight, port, inspection, testing and marketing charges are adjusted for. The Deferred Payment for the period based on 17.5% of net revenues equates to £6,150,478.94 which in turn equates to a payment of £0.00309 (0.309p) per DCU. The Deferred Payment Calculation Statement can be viewed in full here. The payments will be paid to Prax DCU II Holders on 30 September 2023.
Prax Upstream continues to pursue upstream acquisition opportunities and will provide an update to DCU holders when definitive progress is made.
DCU II Holders will receive the payment via their Crest account or, if holding share certificates, via cheque in the post.
DCU I Holders will receive loan notes in the post.
Alessandro Agostini, Head of E&P – Europe and Africa at the Prax Group said:
“Following the completion of the acquisition of Hurricane Energy in June, we are very pleased to deliver the first payment tranche to DCU holders. In line with previous guidance, the Lancaster Oil Field production continues to follow its natural decline. We had a successful turnaround during the month of August and current production is around 7,000 bopd. The transition of ownership has been smooth and we are pleased to have welcomed numerous Hurricane employees into the Group.
As has been stated previously, our goal is to participate in further deals in the UK North Sea in order to continue to deliver value to the DCU holders. Any significant progress made in this regard will be announced to the market via the Prax website.”
For further information on the DCUs and to sign up for future press releases in relation to the DCUs, please visit the Prax Group’s website: https://www.prax.com/information-for-holders-of-dcus/
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