Operational Update

RNS Number : 6522J

Hurricane Energy PLC

15 April 2020

 

15 April 2020

Hurricane Energy plc

("Hurricane" or the "Company")

Operational Update:

Q1 2020 Production

Hurricane Energy plc, the UK based oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, provides an update on production from the Lancaster Early Production System ("Lancaster EPS").

Lancaster EPS Quarterly Production Update

		Q4 2019	Q1 2020
Oil Production	Million barrels	1.1	1.4
Oil Rate	Barrels of oil per day (bopd)	11,800	14,900
Average Water Cut	% total fluids	10 %	17%

Hurricane completed a prolonged individual flow test on the 205/21a-6 well at the end of January, then reverted to producing from both wells at progressively increasing rates in February. In March, the combined production rate was increased to approximately 20,000 bopd comprising 12,000 bopd from the 205/21a-6 well and 8,000 bopd from the 205/21a-7Z well, before downtime. This recent oil production rate has been associated with approximately 6,000 barrels of water per day, predominantly from the 205/21a-7Z well. The overall water cut for the quarter was approximately 17%. This level of water production is well within the capacity of the Aoka Mizu FPSO's installed water handling facilities.

These production rates have been achieved without the use of electrical submersible pumps (ESPs) and with the wells choked back to less than 50%, confirming the extraordinary productivity of these wells and the reservoir.

There were three cargo liftings from the Aoka Mizu FPSO during the quarter. On 3 April 2020, the eleventh successful crude lifting took place taking total oil sales from the Lancaster EPS to 4.4 million barrels of oil.

Capital Markets Day 2020

On 24 March 2020, the Company announced its Capital Markets Day had been postponed owing to restrictions on movement implemented in the UK in response to COVID-19. The Capital Markets Day presentation is now planned to take place on 27 April 2020, via webcast. A link to view the presentation will be provided on the Company's website: www.hurricaneenergy.com/investors .

Dr Robert Trice, Chief Executive of Hurricane, commented:

"We are very pleased with the performance of the Lancaster EPS in Q1 2020. As at the end of March, the EPS has safely produced approximately 4.4 million barrels of oil since starting up last year. Despite the significant scale of these produced oil volumes, the Lancaster EPS is still very much in a data gathering phase, as we continue to better our understanding of this unique basement reservoir. Further testing at the current rates will be required before any trends can be confirmed and conclusions made about the long-term behaviour of the reservoir. Once trends have been established, it is anticipated that alternative combinations of well rates may be tested in order to establish the optimum long-term production configuration for the two wells.

"Whilst water production rates have materially increased since start-up of the Lancaster EPS, Hurricane's interpretation of water behaviour data has continued to support the Company's perched water model. Although it is not possible to predict future changes in water cut at present, the combination of high productivity wells, potential for currently unused production support from ESPs, and water handling capacity of the Aoka Mizu FPSO give the Company sufficient confidence to maintain its forward guidance at 18,000 bopd, net of 10% assumed downtime."

Contacts: 

Hurricane Energy plc Dr Robert Trice, Chief Executive Officer	[phone]
Stifel Nicolaus Europe Limited Nominated Adviser & Joint Corporate Broker Callum Stewart / Ashton Clanfield	[phone]
Morgan Stanley & Co. International plc Joint Corporate Broker Andrew Foster / Tom Perry / Alex Smart	[phone]
Vigo Communications Public Relations Patrick d'Ancona / Ben Simons [e-mail]	[phone]

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% owned by Hurricane) 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. Hydrocarbons were introduced to the FPSO system on 11 May 2019 and the first oil milestone was achieved on 4 June 2019.

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.

Glossary

FPSO	Floating production storage and offloading vessel
Spirit Energy	Spirit Energy Limited

Inside Information

This announcement does not contain inside information.

 

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