TIDMHUR
RNS Number : 2425V
Hurricane Energy PLC
02 December 2019
2 December 2019
Hurricane Energy plc
("Hurricane" or the "Company")
'Warwick West' 204/30b-4 Well Result
&
Lancaster Operational Update
Hurricane Energy plc, the UK based oil and gas company focused
on hydrocarbon resources in naturally fractured basement
reservoirs, reports the results of testing of the 204/30b-4
("Warwick West") well and provides an update in relation to the
Lancaster Early Production System ("Lancaster EPS").
Highlights
-- Warwick West
o Discovery of light, 43deg API oil
o Maximum stable flow rate of 1,300 bopd on natural flow
o Third horizontal well to be drilled and tested in 2019
programme
o Programme currently within time and budget forecasts
-- Lancaster EPS
o 2.5 million barrels of oil sold across six cargoes to date
o Production in line with guidance for Q4 2019 of 11,000
bopd
Warwick West Result
The Warwick West well was spudded on 24 September 2019 and was
drilled to a total depth of 1,879 m TVDSS. It intersected a 931 m
horizontal section of fractured basement reservoir.
The well flowed for a total of 85 hours in a number of flowing
periods at variable rates, using both an electric submersible pump
("ESP") and under natural flow, while work continued to clean the
well and evaluate reservoir performance. A stable rate using an ESP
could not be reliably measured as the well was still in the process
of cleaning up. After an extended pressure build-up period, a final
flow period was conducted under controlled natural flow conditions
which achieved a stable, sustainable rate of 1,300 bopd with
evidence of the well having cleaned up further. During this flowing
period, less than 0.5% water was produced.
Initial analysis of oil samples indicates a light, 43deg API
oil. Further technical analysis of PVT fluid samples will now be
carried out. This will include comparing the geochemical signature
of oil from Warwick West with oils procured from Warwick Deep and
Lincoln Crestal.
Warwick West is the third and final well of the 2019 programme
on the Greater Warwick Area ("GWA") which has been carried out
using the Transocean Leader semi-submersible rig. In accordance
with regulatory requirements, the rig will now plug and abandon the
well before demobilising.
Hurricane and its joint venture partner on the GWA, Spirit
Energy, are currently evaluating the results of the three wells
drilled and tested in 2019. Further technical analysis will be
required to determine the impact on the potential for the GWA to be
a single accumulation, and on volumetrics.
Lancaster EPS Operations
On 14 November the sixth cargo of crude oil from the Lancaster
EPS was lifted, taking total oil sales to 2.5 million barrels since
First Oil in June 2019. Average production for the remainder of the
year is expected to continue to be in-line with guidance for Q4
2019 of approximately 11,000 bopd, constrained by system
availability and data gathering requirements.
As part of the data gathering exercise for the Lancaster EPS,
the Company has been carrying out periods of production from the
205/21a-6 and 205/21a-7Z wells separately, to assess fluid dynamics
and measure reservoir performance without the impact of
interference from the other well. An interim update will be made
when these flow periods have been completed, which is expected to
be later in December 2019.
Dr Robert Trice, Chief Executive of Hurricane, commented:
"We are pleased to have made another discovery with the Warwick
West well. The flow test results confirm the presence of light,
mobile oil.
"The impact that this well will have on how the Company views
the GWA accumulation and its associated volumetrics will require
further technical analysis. The GWA joint venture is now assessing
the optimal appraisal strategy for the GWA, and Hurricane will
provide an update in due course.
"Further progress is also being made in our understanding of the
Lancaster reservoir. Uninterrupted vessel uptime combined with good
well productivity have allowed us to carry out additional data
gathering whilst remaining in line with guidance for Q4 2019. We
will provide a further update later in December.
"In 2019 we have generated a wealth of new data from both the
GWA and Lancaster and I look forward to presenting our findings in
detail at our proposed Capital Markets Day in Q1 2020."
Contacts:
Hurricane Energy plc
Dr Robert Trice, Chief Executive Officer +44 (0)1483 862
Alistair Stobie, Chief Financial Officer 820
Stifel Nicolaus Europe Limited
Nominated Adviser & Joint Corporate Broker
Callum Stewart / Nicholas Rhodes / Ashton
Clanfield +44 (0)20 7710 7600
Morgan Stanley & Co. International plc
Joint Corporate Broker
Andrew Foster / Tom Perry / Alex Smart +44 (0)20 7425 8000
Vigo Communications
Public Relations
Patrick d'Ancona / Ben Simons
hurricane@vigocomms.com +44 (0)20 7390 0230
About Hurricane
Hurricane was established to discover, appraise and develop
hydrocarbon resources associated with naturally fractured basement
reservoirs. The Company's acreage is concentrated on the Rona
Ridge, in the West of Shetland region of the UK Continental
Shelf.
The Lancaster field (100%) is the UK's first producing basement
field. Hurricane is pursuing a phased development of Lancaster,
starting with an Early Production System consisting of two wells
tied-back to the Aoka Mizu FPSO. This development is initially
expected to produce an average of 17,000 bopd (gross production of
20,000 bopd with assumed operating efficiency of 85%, following a
period of ramp-up). First oil was achieved on 4 June 2019.
Hurricane's other assets include Lincoln (50%), Warwick (50%),
Halifax (100%), Whirlwind (100%), and Strathmore (100%). Together
with Lancaster, these assets have total combined 2P reserves and 2C
contingent resources of 2.6 billion barrels of oil equivalent (2.3
billion barrels of oil equivalent net to Hurricane).
In September 2018, Spirit Energy farmed-in to 50% of the Lincoln
and Warwick assets, committing to a phased work programme targeting
sanction of an initial stage of full field development. The first
phase of the programme includes the drilling and testing of three
wells in 2019.
Glossary
2P reserves Proved plus probable reserves under the Society
of Petroleum Engineers' Petroleum Resources
Management System
2C contingent resources Best case contingent resources under the
Society of Petroleum Engineers' Petroleum
Resources Management System
================================================
API American Petroleum Institute gravity
================================================
bopd Barrels of oil per day
================================================
ESP Electrical submersible pump
================================================
FPSO Floating production storage and offloading
vessel
================================================
PVT Pressure volume temperature
================================================
Spirit Energy Spirit Energy Limited
================================================
TVDSS Total vertical distance subsea
================================================
Inside Information
This announcement contains inside information as stipulated
under the market abuse regulation (EU no. 596/2014). Upon the
publication of this announcement via regulatory information service
this inside information is now considered to be in the public
domain.
Competent Person
The technical information in this release has been reviewed by
Dr Robert Trice, who is a qualified person for the purposes of the
AIM Guidance Note for Mining, Oil and Gas Companies. Dr Robert
Trice, Chief Executive Officer of Hurricane Energy plc, is a
geologist and geoscientist with a PhD in geology and has over 30
years' experience in the oil and gas industry.
Standard
Resource estimates contained in this announcement have been
prepared in accordance with the Petroleum Resource Management
System guidelines endorsed by the Society of Petroleum Engineers,
World Petroleum Congress, American Association of Petroleum
Geologists and Society of Petroleum Evaluation Engineers.
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END
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