Hurricane Energy PLC Technical Review and Operational Update (2936V)
August 06 2020 - 2:00AM
UK Regulatory
TIDMHUR
RNS Number : 2936V
Hurricane Energy PLC
06 August 2020
6 August 2020
Hurricane Energy plc
("Hurricane" or the "Company")
Technical Review and Operational Update
Hurricane Energy plc, the UK based oil and gas company focused
on hydrocarbon resources in naturally fractured basement
reservoirs, provides an update on the Technical Review of the
Lancaster field.
Technical Review Update
As announced on 8 June 2020, a Technical Committee of
Hurricane's Board was established to re-examine the full range of
possible geological and reservoir models for the Lancaster field
(the "Technical Review").
The Technical Review is ongoing and final conclusions have not
yet been made. However, as a result of the review and analysis
performed to date, which has incorporated both existing and new
data, Hurricane's Technical Committee has concluded that there is a
reasonable probability that the oil water contact in the Lancaster
field is shallower than the range of oil water contacts envisaged
in the 2017 Competent Person's Report by RPS Energy.
Consequently, the Company believes there is a risk of a material
downgrade to estimated reserves attributable to the Lancaster Early
Production System, and that there will also be a material downgrade
to estimated contingent resources across the West of Shetland
portfolio. This assessment does not take into account any
production enhancement options for the Lancaster field which are
currently under evaluation.
Completion of the Technical Review is expected on or before the
Company's interim 2020 results on 11 September 2020, at which point
the Company expects to be in a position to notify management
estimates of reserves and resources for the Lancaster field,
prepared in accordance with the Society of Petroleum Engineers'
Guidelines for the Evaluation of Petroleum Reserves and
Resources.
Operational Update
On 2 August 2020, the Aoka Mizu FPSO underwent a controlled
shutdown to undertake an inspection. The inspection identified
necessary repairs which have been ongoing in recent days, with
production expected to restart imminently. Immediately prior to the
shutdown, the field was producing at a gross rate of c.17,000
bopd.
-ends -
Contacts:
Hurricane Energy plc
Beverley Smith, Interim Chief Executive Officer +44 (0)1483 862
Philip Corbett, Head of Investor Relations 820
Stifel Nicolaus Europe Limited
Nominated Adviser & Joint Corporate Broker
Callum Stewart / Ashton Clanfield +44 (0)20 7710 7600
Morgan Stanley & Co. International plc
Joint Corporate Broker
Andrew Foster / Tom Perry / Alex Smart +44 (0)20 7425 8000
Vigo Communications
Public Relations
Patrick d'Ancona / Ben Simons
hurricane@vigocomms.com +44 (0)20 7390 0230
About Hurricane
Hurricane was established to discover, appraise and develop
hydrocarbon resources associated with naturally fractured basement
reservoirs. The Company's acreage is concentrated on the Rona
Ridge, in the West of Shetland region of the UK Continental
Shelf.
The Lancaster field (100% owned by Hurricane) is the UK's first
producing basement field. Hurricane is pursuing a phased
development of Lancaster, starting with an Early Production System
consisting of two wells tied-back to the Aoka Mizu FPSO.
Hydrocarbons were introduced to the FPSO system on 11 May 2019 and
the first oil milestone was achieved on 4 June 2019.
In September 2018, Spirit Energy farmed-in to 50% of the Lincoln
and Warwick assets, committing to a phased work programme targeting
sanction of an initial stage of full field development.
Glossary
bopd Barrels of oil per day
UKCS UK Continental Shelf
===========================================
FPSO Floating production storage and offloading
vessel
===========================================
Inside Information
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under the market abuse regulation (EU no. 596/2014). Upon the
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END
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