3rd Sep 2018 08:54
LONDON (Alliance News) - Shares rose in Hurricane Energy PLC on Monday after it said Spirit Energy Ltd has farmed into 50% of Hurricane's Lincoln and Warwick Licences, which cover the Greater Warwick Area.
Shares in the oil and gas company were up 13% at 55.58 pence on Monday morning in London, having opened up to 56.89p.
The farm-in has opened up a new work programme across Hurricane's assets, accelerating their possible monetisation by targeting reserve growth, Hurricane said. First oil in the Greater Warwick Area is expected by 2020, it added, and a final investment decision on the first phase of a full field development by 2021.
The work programme comes in two phases: The first is for 2019, in which Hurricane will carry out a USD180.6 million programme to drill, log and test three exploration wells to speed up the appraisal of Lincoln and the exploration of Warwick.
By 2020, should phase one be successful, the second phase will involve carrying out 50% of its share of an estimated USD187.5 million programme to tie-back one well to the Aoka Mizu FPSO, complete host modifications, and tie it in to the West of Shetland Pipeline for gas export.
A single well tie-back from Greater Warwick Area is expect to provide a daily production rate of 10,000 barrels of oil per day and associated reserves at around 20 million barrels.
"We are delighted to be working with Spirit Energy. We share a common vision for the development of the Greater Warwick Area and more importantly a shared understanding of the potential of fractured basement in the UKCS. Their prior experience of basement in Norway and elsewhere underpins this understanding," said Chief Executive Robert Trice.
"As a result of the GWA Farm-in, Lancaster EPS cash flows have been freed up to focus on appraisal of the Greater Lancaster Area. As we approach first oil on Lancaster, which remains on track for the first half of 2019, we have increased financial flexibility and two parallel work programmes to drive our Rona Ridge resources towards monetisation," Trice added.
Related Shares:
HUR.L