TIDMHUR
RNS Number : 6953Q
Hurricane Energy PLC
14 September 2017
14 September 2017
Hurricane Energy plc
("Hurricane" or the "Company")
Operational Update
Hurricane Energy plc, the UK based oil and gas company focused
on hydrocarbon resources in naturally fractured basement
reservoirs, is pleased to provide an operational update on the
Lancaster Early Production System ("EPS").
Highlights
-- Lancaster EPS remains on schedule for first oil in 1H 2019
-- Hurricane has taken the Final Investment Decision on the
development of the Lancaster Early Production System
-- Agreements now effective with Bluewater Energy Services for
upgrade, lease and operation of the 'Aoka Mizu' FPSO vessel
-- 'Aoka Mizu' now on tow to Dubai for upgrade work
-- Rig contract signed with Transocean to complete already drilled EPS production wells
-- Fabrication orders placed with TechnipFMC for SURF and SPS
-- Development and Production regulatory approval expected shortly
Following completion of the equity placing and convertible bond
offering announced in June 2017 (the "Fundraising"), Hurricane and
its key contractors have proceeded with procurement, fabrication
and contracting activities related to the EPS on the Lancaster
field. The Company, now fully-funded to reach first oil, remains on
track for first oil in 1H 2019.
FPSO Aoka Mizu contract awarded to Bluewater
On 14 August 2017, key contracts between Bluewater Energy
Services and the Company outlining terms for the upgrade, lease and
operation of the FPSO vessel, 'Aoka Mizu', and associated
agreements, became effective in accordance with their terms. These
agreements had previously been executed on 23 June 2017. The vessel
left Gdansk on 27 July 2017 and is currently on tow to Dubai, where
its upgrade is planned to be undertaken. It is expected to arrive
by early October. The mooring buoy is also being fabricated in
Dubai, where work has commenced.
Rig contract awarded to Transocean
The Company has entered into a contract with Transocean for the
Paul B. Loyd Jr. semi-submersible drilling rig to complete the
previously drilled Lancaster 205/21a-6 and 205/21a-7Z horizontal
production wells, commencing 2Q 2018.
SURF and SPS contract awarded to TechnipFMC
TechnipFMC has commenced procurement and fabrication of the main
subsea components of the development including subsea umbilical,
risers and flowlines "SURF" and subsea production system "SPS".
Subsea installation activities at Lancaster are scheduled for
summer 2018, in advance of the planned arrival of the 'Aoka
Mizu'.
A TechnipFMC vessel has recently completed a further seabed
survey as part of the planning process for boulder clearance around
the area planned for SURF installation.
The Company is making good progress with the regulatory
authorities in relation to the approval of Company's Field
Development Plan ("FDP") and associated consents and permits for
the Lancaster EPS development. Approval is expected shortly, with
no impact to overall project schedule anticipated.
Dr Robert Trice, Chief Executive, commented:
"I am delighted that all operational work streams are proceeding
on track for delivery of the project within the target timeline of
first oil in 1H 2019.
"Successful completion of the Fundraising allowed the Company to
move ahead with the upgrade of the FPSO, fabrication of the buoy,
and procurement of the subsea components for installation work to
begin next summer. We greatly appreciate the contributions of our
key contractors and partners, Bluewater Energy Services and
TechnipFMC, in progressing the project at pace.
"The Lancaster EPS is not only an essential step in planning for
the full field development of the Company's Rona Ridge assets, but
also represents a substantial development in its own right, with
planned production of 17,000 barrels of oil per day.
"We look forward to providing further updates as we move forward
with engineering, procurement, installation and commissioning
(EPIC) activities; and once regulatory approval is obtained."
Contacts:
Dr Robert Trice (Chief
Hurricane Executive Officer)/
Energy Alistair Stobie (Chief +44 (0)1483
plc Financial Officer) 862 820
Nominated Adviser and
Cenkos Joint Corporate Broker
Securities Derrick Lee/Nick Tulloch/Beth +44 (0)131 220
plc McKiernan 6939
Stifel
Nicolaus Joint Corporate Broker
Europe Callum Stewart/Nicholas +44 (0)20 7710
Limited Rhodes/Ashton Clanfield 7600
Vigo Communications Public Relations +44 (0)20 7830
Patrick d'Ancona/Ben 9704
Simons Hurricane@vigocomms.com
About Hurricane
Hurricane was established to discover, appraise and develop
hydrocarbon resources associated with naturally fractured basement
reservoirs.
Hurricane's acreage is concentrated on the Rona Ridge, West of
Shetland. The Lancaster licence, the Company's most appraised
asset, has combined 2P Reserves and 2C Resources of 523 million
barrels. In addition, the Company has 205 million barrels of oil
equivalent on its Whirlwind licence (under the Whirlwind oil
case).
During the 2016-2017 drilling campaign the Company made two
significant discoveries* at Halifax and Lincoln, indicating that
the Greater Lancaster Area and the Greater Warwick Area have the
potential to be two large accumulations.
*Discovery - This classification is consistent with SPE/AAPG/WPC
and SPEE guidelines for Petroleum Resource Management -
Determination of Discovery Status
Glossary / Definitions
AAPG American Association of Petroleum
Geologists
EPIC Engineering, Procurement, Installation
and Commissioning
EPS Early Production System
FPSO Floating Production, Storage
and Offloading vessel
SPE Society of Petroleum Engineers
SPEE Society of Petroleum Evaluation
Engineers
SPS Subsea Production System
SURF Subsea Umbilicals, Risers and
Flowlines
WPC World Petroleum Council
Important notice
Readers of this announcement should note that timeliness
relating to the Lancaster EPS Development are indicative only.
Sustained production is dependent on, amongst other things,
successful receipt of the Regulators' approval of the field
development plan and associated consents and permits, manufacture
and installation of the FPSO mooring buoy, SPS and SURF equipment,
completion of the producer wells, completion of the modifications
to the FPSO Aoka Mizu and its successful hook up and commissioning
at the Lancaster field, together with reservoir performance.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCGGUUPBUPMPGW
(END) Dow Jones Newswires
September 14, 2017 02:01 ET (06:01 GMT)
Hurricane Energy (LSE:HUR)
Historical Stock Chart
From Apr 2024 to May 2024
Hurricane Energy (LSE:HUR)
Historical Stock Chart
From May 2023 to May 2024