Lincoln 205/26b-A Well Spud

RNS Number : 7123O

Hurricane Energy PLC

09 November 2016

 

This announcement contains inside information

For immediate release: 9 November 2016

Hurricane Energy plc

("Hurricane" or the "Company")

Lincoln 205/26b-A Well Spud

Hurricane Energy plc, the UK-based oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, is pleased to announce, following the successful completion of the Lancaster 7 Wells and the subsequent removal of the wear bushing from the 205-21a-6 well, the cessation of drilling activities on Lancaster and the spudding of the "Lincoln Well" on 8 November 2016.

The Lincoln Well is targeting a basement prospect geologically similar to the nearby Lancaster structure. Seismic interpretation indicates a well-connected fault network within the Lincoln basement and, encouragingly, a previous well (205/26-1) drilled in 1975 by Arco on the down-dip flank of the Lincoln structure found oil in sandstones immediately above the basement, thus mitigating the oil charge risk to the prospect. Subsequent analysis by Hurricane identified traces of oil in the short interval of basement that was drilled below the oil-bearing sandstones. The basement interval in which the Company believes oil to be present is 2,135m TVDSS which is 355m TVD below the structural closure interpreted by RPS Energy Limited in the 2013 CPR.

The Lincoln prospect is approximately 9km from Lancaster which, as a result, could deliver significant incremental value via tie-back to a Lancaster development hub in a subsequent phase of development of the Greater Lancaster Area. The CPR identified P50 Prospective Resources of 150 million barrels in the Lincoln field. Following the success of the Pilot Well drilled by the Company on the Lancaster field, the Company believes that the Lincoln field could have unrisked Prospective Resources of up to approximately 250 million barrels assuming the Lincoln prospect is analogous to the Lancaster field and the presence of oil at 2,135m TVDSS indicates a continuous oil column to this depth.

As previously announced, the Company will integrate the result of the Lancaster 6 and 7 Wells and publish an updated CPR in H1 2017.

Contact Details:

Hurricane Energy plc Dr Robert Trice, Chief Executive Officer Alistair Stobie, Chief Financial Officer	[phone]
Cenkos Securities plc Nominated Adviser and Joint Broker Derrick Lee/Nick Tulloch/Beth McKiernan	[phone]
Macquarie Capital (Europe) Limited Joint Broker Alex Reynolds / Guy de Freitas	[phone]
Vigo Communications Patrick d'Ancona/Ben Simons	[phone]

About Hurricane

Hurricane is an oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs. The Company's focus is to discover, appraise and develop oil reserves in basement rock. Hurricane has already successfully discovered substantial volumes of oil on the UKCS. The Company has 444-470 mmboe of 2C Contingent Resources and 432-442 mmboe of P50 Prospective Resources on acreage it controls 100%.

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

 

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