27th Apr 2020 10:14
(Alliance News) - Hurricane Energy PLC on Monday retained its production guidance for 2020, following a robust operational performance in the first quarter of the year.
For the three months to the end of March, the oil & gas company reported an average production of 14,900 barrels of oil per day, with 18,500 bopd for the month of April to date.
For the Lancaster Early Production System, Hurricane said its data gathering programme has been a success to date, revealing that individually the wells can produce at rates in excess of 10,000 barrels per day, while testing is targeting a combined rate of up to 20,000 barrels per day for all the wells.
The production so far has been interpreted as being confined to the heel of both wells, suggesting that that there is significantly more permeable and higher production zones further along both well bores.
Meanwhile, in the Greater Warwick Ares, the joint venture between Hurricane and Spirit Energy Ltd is seeking a field determination at the Lincoln field, while consent for the Lincoln Crestal well suspension has been deferred until the end of September.
Looking ahead, Hurricane Energy said its forward production guidance was 18,000 barrels of oil per day for 2020.
For 2019, Lancaster produced an average of 12,900 barrels of oil per day.
"The Lancaster wells have demonstrated very high productivity, despite some unexpected production of what we are confident is 'perched water', and we continue our testing programme at a combined rate of up to 20,000 bopd with the objective of evaluating sustainability and long-term trends at this target rate," said Chief Executive Robert Trice.
"It will take more time to confirm the long-term potential of the reservoir, and our operations may be impacted by measures related to the Covid-19 pandemic and the resulting macroeconomic situation. However, we have sufficient confidence, based on data obtained to date, to provide current forward guidance of net 18,000 bopd," Trice added.
Hurricane Energy shares were down 9.3% at 10.69 pence on Monday morning in London.
By Dayo Laniyan; [email protected]
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