Hurricane Energy has announced disappointing results for its Warwick Deep prospect which has not flown at commercial rates of oil and gas.
The decision has now been taken to plug and abandon the well, which Hurricane said “cannot be considered suitable” as a future means of production.
Pre-drill estimates had suggested up to 935million barrels of oil equivalent were potentially recoverable from Warwick, which lies in the West of Shetland.
The Transocean Leader rig drilled the well to nearly 2,000 metres, but Hurricane said it did not flow at commercial rates, producing a mix of drilling brine, water, oil and gas.
Warwick Deep is part of a three-well drilling campaign, which was targeting up to two billion barrels.
The company completed a farm-out deal last year involving the sale of 50% of its Greater Warwick Area to Spirit Energy, who will cover the cost of the campaign.
Hurricane is now looking ahead to the next well, Lincoln Crestal, which is now the preferred tie-back candidate for the Lancaster field.
CEO Robert Trice said: “It is disappointing that the Warwick Deep well did not flow at commercial rates.
“We were initially encouraged by hydrocarbon shows and gas ratio analysis indicative of light oil, however drill stem testing has clearly demonstrated that Warwick Deep cannot be considered suitable as a future production well and therefore the well will be plugged and abandoned.
“I look forward to commencing operations on the second well in the three-well programme, Lincoln Crestal. This is now the preferred candidate to be tied back to the Aoka Mizu FPSO, where Lancaster EPS (early production system) production operations remain in-line with guidance.”