Hurricane Energy cuts output guidance after disappointing well test

Fri, 22nd May 2020

Oil company Hurricane Energy downgraded its annual production guidance after recording disappointing test results at a UK well. Hurricane had been testing two Lancaster early production system wells to determine the sustainability of combined production rates up to 20,000 barrels of oil per day (bopd). 'Achieving this target rate at a sustainable level has not been possible as the impact of increasing production rates resulted in instability in the flow regime on the 205/21a-7Z well as a result of interference between the wells,' the company said. 'This has led to a decision to shut-in the 205/21a-7Z well for the time being and return to a period of testing maximum sustainable rates from just the 205/21a-6 well.' The Lancaster early production system was currently producing from the 205/21a-6 well at a rate of about 10,300 bopd. 'The company plans to increase this rate incrementally, to determine its maximum sustainable level,' Hurricane said. 'This process will result in a period of production substantially below forward guidance of net 18,000 bopd and Hurricane is therefore suspending previous full year guidance of net 17,000 bopd.' 'Production has averaged 15,500 bopd year to date.' At 2:03pm: (LON:HUR) Hurricane Energy PLC share price was -5.24p at 6.96p Story provided by StockMarketWire.com

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