2nd Dec 2019 10:36
(Alliance News) - Hurricane Energy PLC on Monday said it has made another discovery as its Warwick West well in the UK North Sea but further analysis is needed.
Shares in Hurricane were down 19% at 37.67 pence in London in morning trading.
The Warwick West well, third and final well in the 2019 Greater Warwick Area programme, was spudded September 24 and drilled to 1,879 metres, intersecting a 931 metre horizontal section of a fractured basement reservoir.
The well flowed for 85 hours total at variable rates. A stable rate could not be reliably measured with an electric submersible pump because the well was still cleaning up. After a build-up period, final flow was concluded and achieved a stable, sustainable 1,300 barrels of oil per day rate. Less than 0.5% water was produced.
The company said more technical analysis will be needed to evaluate the impact of the well tests on volumetrics and on whether the Greater Warwick Area could "be a single accumulation"
Hurricane owns 50% of the Warwick site, located in the Greater Warwick Area offshore. The other 50% is held by joint venture partner Spirit Energy Ltd. Initial analysis of oil samples taken from the well indicate a light, 43 degree API oil.
Chief Executive Robert Trice said: "We are pleased to have made another discovery with the Warwick West well. The flow test results confirm the presence of light, mobile oil.
"The impact that this well will have on how the company views the [Greater Warwick Area] accumulation and its associated volumetrics will require further technical analysis. The GWA joint venture is now assessing the optimal appraisal strategy for the GWA, and Hurricane will provide an update in due course."
In addition, Hurricane posted an update on its 100% owned Lancaster early production system. A sixth crude oil cargo from the Lancaster EPS off the Shetland islands was lifted November 14, meaning total sales since first oil in June came to 2.5 million barrels.
For the rest of 2019, average production is to to be in line with Hurricane's fourth quarter guidance of 11,000 barrels of oil per day.
In its efforts to gather data on the Lancaster EPS, Hurricane has carried out periods of production from wells 205/21a-6 and 205/21a-7Z separately so as to assess their fluid dynamics and measures reservoir performance without the wells interfering with each other. When these flow periods are complete, Hurricane will post an interim update - most likely later in December.
Trice said: "Further progress is also being made in our understanding of the Lancaster reservoir. Uninterrupted vessel uptime combined with good well productivity have allowed us to carry out additional data gathering whilst remaining in line with guidance for Q4 2019."
By Anna Farley; [email protected]
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