Selection of Exclusive Subsea Provider

RNS Number : 2825M

Hurricane Energy PLC

12 October 2016

 

For immediate release: 12 October 2016

This announcement contains inside information.

Hurricane Energy plc

("Hurricane" or the "Company")

Selection of Technip and FMC Technologies, under their alliance, as Exclusive Subsea Provider

Hurricane Energy plc, the UK based oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, announces that the Company has provisionally selected Technip and FMC Technologies, under their alliance, as its exclusive provider of subsea solutions for the Lancaster Early Production System ("EPS") and for subsequent development of the Greater Lancaster Area.

Technip and FMC Technologies, under their alliance, have developed with Hurricane, an innovative approach to enhance the economics of the proposed development. Key to this approach is focusing on system design optimisation and risk reduction in project execution.

The parties are currently undertaking front end engineering studies, in order to meet Hurricane's stated sanction date of the end of H1 2017.

Dr Robert Trice, Hurricane's CEO, commented: "I am delighted that we have been able to select such world-class service companies as Technip as our SURF provider and FMC Technologies for our SPS provider. Their combined solution is ideally suited to the development of Lancaster and the Greater Lancaster Area.

Hurricane, Technip and FMC Technologies have worked collaboratively to develop the Lancaster EPS as a fit for purpose concept. This has allowed us to reduce the scope and the cost of the development, and ensure full alignment amongst those driving the project forward.

We believe that the alliance's innovative proposal is an endorsement of the significant potential of Hurricane's fractured basement portfolio West of Shetland. Our collaboration with them is a very important milestone as we look over time to develop the Greater Lancaster Area's full potential, whose full extent we believe is yet to be defined. The initial results from our recent Pilot Well has increased our internal base case resources on Lancaster to in excess of 300 million barrels. Furthermore, it is clear that such collaboration will be pivotal in developing the remaining recoverable reserves not just at Lancaster but on the UK continental shelf as a whole."

Knut Boe, President, North Sea Canada, Technip said: "Both Technip and FMC Technologies, through the alliance, are delighted to be selected as Hurricane's exclusive SURF / SPS providers and look forward to facilitating the EPS and Greater Lancaster Area development."

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 Alex Reynolds/ Guy de Freitas	[phone]
Vigo Communications	Public Relations Patrick d'Ancona/Ben Simons	[phone] [e-mail]

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%.

 

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