Completion of Pilot Well Operations

RNS Number : 3795J

Hurricane Energy PLC

09 September 2016

 

9 September 2016

This announcement contains inside information

Hurricane Energy plc

("Hurricane" or the "Company")

Interim Update

Completion of Pilot Well Operations

Hurricane Energy plc, the UK based oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, announces that the Company has completed the testing and logging phase of the 205/21a-7 well (the "Pilot Well") and operations are now progressing as planned to permanently abandon the Pilot Well reservoir section prior to side-tracking the top-hole to form the 7Z horizontal sidetrack (the "Horizontal Well"). The information below is preliminary and will be updated following detailed analysis once the final well data and reports have been received and analysed.

Preliminary third party analysis from the Pilot Well indicates:

·     A very significant hydrocarbon column of at least 620 metres is present within the basement extending well below structural closure (which is 1,380 metres TVDSS) confirming Hurricane's reservoir model for the Lancaster field.

·     Provisional analysis indicates a minimum oil down to ("ODT") at 1,620m TVDSS, 240 metres TVD below structural closure. In addition, wireline fluid samples have demonstrated mobile oil of a gravity consistent with Lancaster oil to a depth of 1,646 metres TVDSS.

·     The penetrated aquifer interval is porous and permeable.

·     Wireline and well test data indicates that there are no pressure barriers detected in the reservoir.

·     DST testing of the basement reservoir yielded a maximum, natural flow rate of 6,600 bopd and a maximum flow rate of 11,000 bopd (artificial lift with an electrical submersible pump) of good quality 38 API oil with no formation water produced. This flow is interpreted as predominantly emanating from a single fracture zone connected to the underlying basement. 

The next stage of operations involves drilling of the Horizontal Well. This is designed to provide a second future production well and additional information to help optimally plan the Lancaster field development.

Hurricane will announce its interim results on 22 September 2016.

Dr Robert Trice, Hurricane's CEO, commented "I am delighted that the Pilot Well has confirmed a significant oil column deeper than the 2C Case set out in the Company's CPR. Our initial assessment of the well results, which are subject to refinement of the provisional data, suggest that the Lancaster field is likely to be significantly greater than the 200mm bbls 2C case.

The combination of high flow rates, an extensive oil column and underlying aquifer materially de-risks Hurricane's plans for a future Lancaster field development and further underlines the potential of the fractured basement West of Shetland."

Contacts: 

Hurricane Energy plc	Dr Robert Trice (Chief Executive Officer)/ Alistair Stobie (Chief Financial Officer)	[phone]
Cenkos Securities plc	Nominated Adviser and Joint Corporate Broker Derrick Lee/Nick Tulloch/Beth McKiernan	[phone]
Macquarie Capital (Europe) Limited	Joint Corporate Broker Fergus Marcroft	[phone]
Vigo Communications	Public Relations Patrick d'Ancona/Ben Simons	[phone] [e-mail]

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. 

Further information on Hurricane can be found at: www.hurricaneenergy.com.

Glossary of terms used in this announcement:

2C	denotes a best estimate scenario of Contingent Resources
bopd	barrels of oil per day
Contingent Resources	those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations by application of development projects, but which are not currently considered to be commercially recoverable due to one or more contingencies
CPR	competent persons' report
DST	Drill Stem Testing
FWL	free water level
mm bbls	million barrels
TVD	true vertical depth
TVDSS	true vertical depth (sub-sea)

 

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