Thursday 12 May 2022

Harbour Energy plc provides the following unaudited Trading Update.

Highlights

Q1 production averaged 215 kboepd, up c.35 per cent on Q1 2021; on track to meet full year guidance of 195-210 kboepd

Q1 operating costs of $14.1/boe; full year guidance unchanged at $15-16/boe

New wells on-stream at J-Area, AELE and Tolmount (UK); active 2022 rig programme including drilling underway at the Catcher- and J-Areas (UK) and the Andaman II licence (Indonesia)

Total capex (including decommissioning spend) of c.$160 million for Q1; full year guidance of $1.3 billion unchanged, an increase of c.40 per cent versus 2021 levels reflecting the increase in drilling activity

Continued progress on Harbour’s UK CCS projects in line with the Group’s goal of Net Zero by 2035

Net debt reduced to $1.7 billion at 31 March from $2.3 billion at 31 December 2021

Proposed final dividend of $100 million (8.4505 pence per share) for full year 2021 to be paid on 18 May, subject to shareholder approval

Linda Z Cook, Chief Executive Officer, commented:

“We have had a strong start to the year. Our increased production reflects the addition of the Premier portfolio, improved operating reliability and increased UK drilling activity. The Tolmount field in the UK began production in April and, once plateau levels are reached, the project is expected to increase UK domestic gas production by more than 5 per cent.

We continue to invest in high return, infrastructure-led opportunities within our asset base to sustain production while at the same time generating material free cash flow. This together with our robust balance sheet provides us with significant optionality over future capital allocation.

We are committed to producing oil and gas responsibly. As well as taking action to reduce emissions from our operations, we are very focused on progressing our CCS activities in the UK which include the V Net Zero project in the Humber region and an interest in the Acorn project in Scotland. These projects have the potential to capture and store multiple times Harbour’s annual emissions.”