Hurricane reports on Lancaster EPS operations

Source: press release, 29 January 2020

‘Aoka Mizu FPSO’ (photo: Hurricane Energy/Ralph Ehoff)
‘Aoka Mizu FPSO’ (photo: Hurricane Energy/Ralph Ehoff)

Hurricane Energy plc, the UK-based oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, reports strong production performance from the Lancaster Early Production System (Lancaster EPS). Well productivity is above pre-start up expectations, with facility availability above 90%.

Lancaster EPS production from start-up through Q3 was significantly above guidance of 9,000 barrels of oil per day due to better than expected system availability. This was expected to decline into Q4 due to a number of outstanding facilities related issues. However, continued good facilities availability of over 90% allowed Hurricane to commence individual well flow tests during Q4 2019, whilst continuing to deliver full year production above the company’s updated guidance (12,500 barrels of oil per day).

Hurricane has been carrying out these individual flow tests to establish individual well performance and the optimum combined well flowrate in light of the immediate and strong pressure communication between the wells. During Q4, the 205/21a-7Z well was produced on its own for 25 days, including periods at relatively low rates as part of the reservoir evaluation process. This resulted in lower oil production and a higher average water cut than observed during Q3.

The Lancaster 6 Well flowed at an average rate of approximately 12,500 barrels of oil per day from the start of individual well flow period on 20 November 2019 until the latest (eighth) lifting on 22 January 2020.

Hurricane intends to complete its individual well flow test on the 6 Well before the end of this month and thereafter intends to flow both the 6 Well and the 7Z Well at a combined rate of approximately 20,000 barrels of oil per day. The company intends to discuss the data acquired from the separate well tests and the subsequent combined flow at the Capital Markets Day on 25 March 2020, unless at any time prior, that data is outside of expectations.

Dr Robert Trice, Chief Executive of Hurricane, comments, “The start-up of the Lancaster EPS has gone very well, with 2019 production exceeding the guidance that we provided when we announced first oil. We’ve also had a strong start to 2020 with the 6 Well test continuing on Lancaster, delivering steady production. A return to two-well production is imminent.”