15th Sep 2014 07:54
LONDON (Alliance News) - Hurricane Energy PLC saw its shares rise early Monday after its said post-well data analysis from the Lancaster oil discovery west of Shetland had shown potential productivity levels that were better than expected and suggested it could start commercial production by drilling one more horizontal well.
In a statement, the said the analysis of the data from the one kilometre horizontal appraisal well 205/21a-6 at Lancaster confirmed a "very good quality" reservoir which could deliver single well rates of 20,000 stock tank barrels a day, significantly ahead of initial expectations of well productivity.
"I am delighted to report that our work on the well data gathered during the recent testing of Lancaster confirms our pre-drill geological model of the fractured basement, as well as significantly advancing our understanding of how the fracture network behaves," Hurricane Chief Executive Robert Trice said in a statement.
"Such a level of productivity means that an early phase of field development and commercial production could be initiated with the addition of only one more horizontal well," he added.
The company is looking at options for funding the field's development.
"As previously reported, we have a data room open for potential farm-inees, however the benefit of having two suspended proven producers and holding 100% of our acreage means that we have a broad range of options to progress the Lancaster Field development and our other assets," Trice said.
Hurricane Energy shares were up 13.4% at 46.50 pence early Monday, one of the biggest rises on the AIM All-Share index.
By Steve McGrath; [email protected]; @stevemcgrath1
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