Hurricane Scores Success with Lancaster Appraisal Well

UK-focused Hurricane Energy reported Thursday that its appraisal well on the Lancaster field, West of Shetland, has been successfully tested. The firm said that the well will now be suspended as a future producer.

Hurricane said that production tests achieved a sustainable oil flow rate, using an electrical submersible pump (ESP), of 9,800 barrels of oil per day – the established oil flow rate being constrained by the capacity of the surface test equipment. The firm added that the Lancaster field, which it has 100-percent ownership of, has estimated 2C contingent resources of 207 million barrels of oil equivalent (MMboe).

The testing program was designed to establish whether commercial hydrocarbon flow rates could be delivered from a 0.6-mile horizontal well drilled through faulted and fractured basement rock under both natural flow and artificial lift conditions.

The maximum sustainable flow rate from the well was 5,300 bopd under natural flow, increasing to 9,800 bopd using artificial lift, while the oil produced was light (38-degree API).

Hurricane CEO Dr Robert Trice commented from the Sedco 712 (mid-water semisub) rig:

"I am delighted to report the successful completion of our testing operations which have achieved hydrocarbon flow rates in the upper range of our pre-drill estimates.  The maximum sustainable flow rate of 9,800 standard tank barrels per day is particularly impressive as it was achieved despite being constrained by surface equipment. Whilst the artificial lift rates are important, the fact that the well also flowed oil at 5,300 barrels per day unaided (natural flow) is a clear demonstration that Hurricane's plans for progressing to a Lancaster field development are technically viable.

"I consider this year's operational result to be major step in further de-risking the company's 2C contingent (444 to 470MMboe) and P50 prospective (432 to 442MMboe) resources and very important as we seek to enhance shareholder value. This successful outcome reinforces the potential importance of basement resources as a strategic resource for the UK."



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