What next for the Hurricane Energy share price as Warwick site reveals vulnerability?
The oil exploration company has seen its shares fall more than 35% since the end of November after disappointing drill results at its Warwick site highlighted vulnerabilities.
![Hurricane Energy](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/news-article-image-folder/BG_oil_barrel_Brent_WTI_321456.png/jcr:content/renditions/original-size.webp)
Hurricane Energy has seen its share price tumble more than 35% since the end of November, driven by disappointing drill results at its Warwick West site which highlighted vulnerabilities.
Last week, the company revealed that the Warwick West site was only capable of producing 1,300 barrels of oil per day, which is weak compared to Hurricane Energy’s pervious wells.
Hurricane Energy is trading at 30p a share as of 16:15 GMT on Wednesday.
Berenberg remains upbeat about Hurricane Energy
Despite the news, analysts at Berenberg remain optimistic about Hurricane Energy, with the Hamburg-based bank reiterating its ‘buy’ rating and issuing a 100p target price for the stock, representing a potential upside of 233.3%.
While analysts at Berenberg agreed that flow rates at the Warwick West well were insufficient to be commercially viable, they had not banked on the site reaping major rewards, with the bank pinning its hopes on its site in Lancaster.
‘The focus remains on Lancaster, where results from the early production scheme (EPS) continue to deliver in line with guidance,’ Berenberg analysts said in a note.
Looking to trade Hurricane Energy? Open a live or demo account with IG.
Barclays Capital refuses to share Berenberg’s optimism
Analysts at Barclays Capital failed to share Berenberg’s optimism about Hurricane Energy, with the bank reiterating its ‘overweight’ rating for the stock and downgrading its target price from 55p to 50p in December.
The new target price still implies a potential upside for the stock of 66.6%, however.
You can go long or short Hurricane Energy with IG using derivatives like CFDs.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/Rebrand/Article_banners/Shares-global-component-banner.jpg/jcr:content/renditions/original-size.webp)
Act on stock opportunities today
Go long or short on thousands of international stocks with CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.