Hurricane - Sarria Daily Comments 16/11/2021

HURRICANE — (Tomás) Monthly operational update released by Hurricane shows production marginally higher than expected,……but, the release re-highlights the issue of well pressure in the Lancaster field. The bubble point is now potentially going to be reached between late December 2021 and February 2022 (slightly earlier than previously guided). This does not mean production ceases but it will require either an additional injector well, some other CAPEX and/or lower production figures. Given the upcoming maturity of the bonds next Summer 2022, uncertainty remains. 

Related, the largest shareholder, Crystal Amber, holds their AGM on 22nd November where it requires a 75% to vote in favour of a resolution to “Continue as Constituted”. Saba Capital, a 25.3% holder has previously stated that they will vote against any Resolution for Continuation.