Hurricane Energy PLC Operational Update (1513B)
05 June 2019 - 4:00PM
UK Regulatory
TIDMHUR
RNS Number : 1513B
Hurricane Energy PLC
05 June 2019
5 June 2019
Hurricane Energy plc
("Hurricane" or the "Company")
Operational Update:
Lancaster EPS First Oil
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 in relation
to the Early Production System development of the Lancaster
field.
On 4 June 2019, the Aoka Mizu FPSO's start-up phase completed
with a 72-hour production test ("First Oil"). The combined flow
from both wells during this test period reached and maintained the
planned production rate of 20,000 barrels of oil per day ("bopd").
This marks the contractual provisional acceptance of the Aoka Mizu
FPSO by Hurricane.
The Company anticipates a gradual ramp-up in facilities
availability over the first six months of production towards long
term operating efficiency of 85%. The Company restates existing
guidance for facilities availability of three months at 45% and
then a further three months at 65%, resulting in average production
rates of 9,000 bopd and 13,000 bopd, respectively.
Dr Robert Trice, Chief Executive of Hurricane, commented:
"I am delighted to announce that First Oil has been achieved and
that the Lancaster field is now on production, beginning the phased
development of Hurricane's considerable resources on the Rona
Ridge.
"Lancaster is the UK's first producing fractured basement field
and the fact that Hurricane has delivered this industry milestone
on time and within budget is an incredible achievement. I would
like to thank the staff of Hurricane, our Tier 1 contractors, and
our shareholders for having the vision to make Lancaster
happen.
"We have successfully achieved our start-up data acquisition
objectives and commenced the evaluation of this material. Up to 12
months of stable production will be required in order to provide a
clear view of the reservoir and enable us to plan for associated
full field development scenarios."
The Company will be holding a Capital Markets Day in July to
discuss the results of preliminary analysis following start-up.
Contacts:
Hurricane Energy plc
Dr Robert Trice, Chief Executive Officer +44 (0)1483 862
Alistair Stobie, Chief Financial Officer 820
Stifel Nicolaus Europe Limited
Nominated Adviser & Joint Corporate Broker
Callum Stewart / Nicholas Rhodes / 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%) 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. This development is initially
expected to produce an average of 17,000 bopd (gross production of
20,000 bopd with assumed operating efficiency of 85%, following a
period of ramp-up). First oil was achieved in June 2019.
Hurricane's other assets include Lincoln (50%), Warwick (50%),
Halifax (100%), Whirlwind (100%), and Strathmore (100%). Together
with Lancaster, these assets have total combined 2P reserves and 2C
contingent resources of 2.6 billion barrels of oil equivalent (2.3
billion barrels of oil equivalent net to Hurricane).
In September 2018, Spirit Energy farmed-in to 50% of the Lincoln
and Warwick assets, committing to a five-phase work programme
starting with three wells in 2019 and targeting sanction of full
field development in 2021.
Glossary
2P Reserves Proved plus probable reserves under the Society
of Petroleum Engineers' Petroleum Resources
Management System
2C Contingent resources Best case contingent resources under the
Society of Petroleum Engineers' Petroleum
Resources Management System
================================================
bopd Barrels of oil per day
================================================
FPSO Floating production storage and offloading
vessel
================================================
Spirit Energy Spirit Energy Limited
================================================
Inside Information
This announcement contains inside information as stipulated
under the market abuse regulation (EU no. 596/2014). Upon the
publication of this announcement via regulatory information service
this inside information is now considered to be in the public
domain.
Competent Person
The technical information in this release has been reviewed by
Dr Robert Trice, who is a qualified person for the purposes of the
AIM Guidance Note for Mining, Oil and Gas Companies. Dr Robert
Trice, Chief Executive Officer of Hurricane Energy plc, is a
geologist and geoscientist with a PhD in geology and has over 30
years' experience in the oil and gas industry.
Standard
Resource estimates contained in this announcement have been
prepared in accordance with the Petroleum Resource Management
System guidelines endorsed by the Society of Petroleum Engineers,
World Petroleum Congress, American Association of Petroleum
Geologists and Society of Petroleum Evaluation Engineers.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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