UKCS: Massive breakthrough for Hurricane Energy

UKCS: Massive breakthrough for Hurricane Energy

Hurricane Energy strikes first oil from the Lancaster field, west of Shetland.

The early production system (EPS) via the two production wells managed to keep the target output rate of 20,000 bopd during the 72-hour production test.

In the initial phase, the EPS intends to gradually power up the facilities over the next six months, with production rates expected to increase on an average between 9,000 to 13,000 bopd over this period.

This success contributes towards unlocking the Rona Ridge, a possible multi-billion-barrel development project in the future, with Lancaster field becoming UK’s “first producing fractured basement field”.

Seismic section over development well 205/21a-7Z. Illustration: Hurricane Energy

The use of the EPS is due to the unpredictable nature of the field, with lessons being learned in this initial phase to develop the field in the years to come efficiently. Twelve months of stable production are required to understand the dynamics of the reservoir better and smartly plan/asses different full field development scenarios.

Lancaster holds resources of more than 500 million stock tank barrels of oil and is 100% owned by Hurricane Energy.

Lancaster well schematic prior to the 205/2a-7Z well. Illustration: Hurricane Energy

The company and partners are extremely busy in the next couple of years with exploration activity ongoing. A drilling plan is approved, and three wells are ready to asses the Greater Warwick Area (GWA), comprising of Warwick Deep exploration well and the proven Lincoln discovery. The GWA is believed to be a continuation of the large oil reservoirs seen at the Lancaster field, though a fault separates the two areas.

Rona Ridge Basement Assets. Illustration: Hurricane energy

Hurricane owns 50% stake in the GWA following its farm-out deal to Spirit, which committed to fund and execute the drilling campaign. In all, Spirit is to cover Hurricane’s costs in the GWA, up to US$387mln across five potential phases of work.

The Lincoln discovery was estimated to host some 604 MMboe of contingent resources, while Warwick’s prospective resource up to 935 MMboe.

Hurricane’s assets West of Shetland. Illustration: Hurricane Energy