22nd May 2020 12:03
(Alliance News) - Hurricane Energy PLC on Friday suspended its 2020 production guidance, as it failed to achieved its targeted production rate at the Lancaster field located west of Shetlands area offshore UK.
The oil & gas explorer also said that it will shut-in one of two wells at Lancaster field due to the disappointing outcome from the forward production and testing programme at the Lancaster early production system.
Shares in Hurricane Energy were trading 44% lower at 6.88 pence each in London on Friday.
Hurricane was testing two Lancaster field wells to determine a combined production rate of up to gross 20,000 barrels of oil per day.
However, the company was unable to achieve the production rate due to an instability in the flow regime on the 205/21a-7Z well as a result of interference between the two wells.
As a result, Hurricane has decided to shut-in the 205/21a-7Z well for the time being and focus on testing maximum sustainable rates from just the 205/21a-6 well.
"This process will result in a period of production substantially below forward guidance of net 18,000 barrels of oil per day and Hurricane is therefore suspending previous full year guidance of net 17,000 barrels of oil per day. Production has averaged 15,500 Barrels of oil per day year to date," the company said.
The 205/21a-6 well is currently producing at a rate of approximately 10,300 barrels of oil per day.
Chief Executive Officer Robert Trice said: "The results of the recent testing of the Lancaster EPS wells at elevated combined production rates are disappointing and the degree of interference encountered is unexpected. Whilst the wells show high productivity individually, their proximity and associated interference behaviour requires further data acquisition before the Company can be confident about optimum long-term well rates".
By Tapan Panchal; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
HUR.L