2nd Sep 2019 09:43
(Alliance News) - Hurricane Energy PLC said Monday production and cash flow from the Lancaster early production system was above expectations despite production constraints.
Lancaster, an offshore field located to the west of the Shetland Islands, has delivered 14,400 barrels of oil per day on average since first oil was lifted in early June until August 17. To date, 1.2 million barrels of crude oil have been sold from the site.
This was achieved despite constrained production caused by the need to have just one of the two subsea flowlines working for most of the period. Both flowlines are now operational.
Hurricane retains production guidance for the second half of 2019 at 11,000 barrels of oil per day.
"We are delighted to provide an update on Lancaster progress and to communicate our production levels have been above expectations for this early phase of operations," Chief Executive Robert Tice said.
"However, despite these promising results, we remain cognisant it will take up to a year to acquire and interpret sufficient performance information to test our reservoir model of the field."
"Now that we are back to flowing the Lancaster wells through separate flowlines, we look forward to gathering data on individual well performance to help optimise well delivery as well as improve the company's understanding of the reservoir's performance," Tice added.
At Lincoln Crestal, also located to the west of the Shetlands, operations have now moved onto drill stem testing. This follows completion of drilling to a total depth of 1,780 metres following initial spudding on July 12.
"On the Greater Warwick Area, Lincoln Crestal well operations are now progressing to drill stem testing," Trice continued. "We look forward to reporting the result shortly."
Lincoln Crestal is part of a three-well drill programme being undertaken at its Lincoln and Warwick sites, being drilled in partnership with Spirit Energy as part of a 50% farm-in deal.
Shares in Hurricane were 1.7% lower at 42.97 pence in London on Monday.
Related Shares:
HUR.L