Hurricane Energy insists West of Shetland dud has no negative impact on other prospects

Hurricane Energy has insisted its recent disappointment at Warwick Deep has “no negative read-across” to its other West of Shetland discoveries.

Last week the firm announced no commercial rates of oil and gas were found at Warwick Deep, despite pre-drill estimates suggesting up to 935million barrels of oil equivalent were potentially recoverable.

Hurricane has now issued a statement saying it will carry out more analysis of the prospect, but it has evidence the result does not negatively impact its nearby Lancaster development and Lincoln discovery.

The operator achieved first oil from its flagship Lancaster field last month, estimated to hold 500million recoverable barrels of oil, however analysts said the next 12 months will be crucial to fully assessing the success of the fractured basement reservoir.

Meanwhile the Transocean Leader, which drilled Warwick Deep, is now about to begin work on the Lincoln Crestal well, a tie-back candidate for the Aoka Mizu FPSO at Lancaster.

According to Hurricane’s website, Lincoln has potentially recoverable contingent resources of between 150million barrels in the more likely case, 604million in the mid-case and 1.5billion barrels of oil equivalent in the less likely case.

Chief executive Robert Trice said: “Confirmation of our provisional analysis will require data from the remaining 2019 drilling campaign, as well as fluid sample analysis from Warwick Deep. Importantly, we have evidence that suggests to Hurricane that the result at Warwick Deep does not have negative read-across to Lancaster or Lincoln.

“We are about to spud Lincoln Crestal which, in the case of demonstrating successful flow rates, will be a tie-back candidate to the Aoka Mizu.

“Looking ahead, we’ve updated our Lancaster EPS production guidance by adding an upside scenario from 2020 onwards, based on the many positive indications we’ve seen to date. We are tracking in line with production guidance for 2019 and are generating significant cash for reinvestment in future activity. Our phased Rona Ridge development continues with strong momentum.”

Source link

Craigmill, Pitcaple, Inverurie, Aberdeenshire, United Kingdom, AB51 5HP
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram