Hurricane Energy PLC Production Guidance Update (2947N)
29 September 2021 - 4:00PM
UK Regulatory
TIDMHUR
RNS Number : 2947N
Hurricane Energy PLC
29 September 2021
29 September 2021
Hurricane Energy plc
("Hurricane" or the "Company")
Production Guidance Update
Hurricane Energy plc, the UK based oil and gas company, provides
an update on production guidance from the Lancaster field, which
takes into account additional production and pressure data gathered
since the annual maintenance shutdown in July 2021.
On 30 April 2021, the Company provided annual production
guidance for the full year 2021 of 8,500 - 10,500 bopd. The Company
continues to forecast that average production for the year is
expected to remain within this range. This annual guidance is based
on an FPSO production uptime assumption of 90% and production from
the P6 well alone on artificial lift via ESP. The production uptime
assumption of 90% includes the impact of the annual maintenance
shutdown, evenly spread across the year.
As previously announced, the Company has committed to providing
six-monthly updates on production guidance. Management's production
guidance from the Lancaster field for the six month period 1
October 2021 to 31 March 2022 (the "Period") is 8,500 - 10,000
bopd, which is based on an improved FPSO production uptime
assumption of 96.5% and production from the P6 well alone on
artificial lift via ESP. The increase in the uptime assumption is a
combination of there being no planned maintenance shutdowns
anticipated in the Period, and reflecting the excellent production
uptime that has been seen on the FPSO to date.
The guidance for the Period is slightly lower than the average
for the full year 2021 due to the expected gradual production
decline from the reservoir over time, partially offset by the
higher FPSO uptime assumption.
Based on current trends, management estimates that wellhead
flowing pressure in the Lancaster reservoir may reach the bubble
point by the end of Q1 2022, consistent with the time range
estimation previously announced on 25 May 2021. Whilst this has
been factored into the guidance for the Period, there will remain a
degree of uncertainty regarding the full impact of this, along with
the risk that gas liberated from the reservoir could be produced
which could result in production either being reduced or ceased
altogether.
Antony Maris, CEO of Hurricane, commented:
"The Company has benefited from higher than expected oil prices
and excellent performance to date of the FPSO. As a result of the
combined efforts of the Hurricane and Bluewater teams, we
anticipate being towards the upper end of our production guidance
for 2021 and this is also reflected in our guidance for the next
six months to 31 March 2022."
-ends-
Contacts:
Hurricane Energy plc
Antony Maris, Chief Executive Officer
communications@hurricaneenergy.com +44 (0)1483 862820
Stifel Nicolaus Europe Limited
Nominated Adviser & Joint Corporate Broker
Callum Stewart / Jason Grossman +44 (0)20 7710 7600
Investec Bank plc
Joint Corporate Broker
Chris Sim / Jarrett Silver +44 (0)20 7597 5970
Vigo Consulting
Public Relations
Patrick d'Ancona / Ben Simons
hurricane@vigoconsulting.com +44 (0)20 7390 0230
About Hurricane
Hurricane has a 100% interest in and operates the Lancaster
field, the UK's first field to produce from a fractured basement
reservoir.
Hurricane also has a 50% interest in the Greater Warwick Area
licence, which contains the Lincoln and Warwick assets.
Visit Hurricane's website at www.hurricaneenergy.com
Glossary
bopd Barrels of oil per day
bubble point The pressure at which gas begins to come
out of solution from oil within the reservoir
===============================================
ESP Electrical submersible pump
===============================================
FPSO Floating production storage and offloading
vessel
===============================================
Mbbls Thousand barrels
===============================================
psia Pounds per square inch absolute
===============================================
TVDSS True vertical depth sub sea
===============================================
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
Antony Maris, Chief Executive Officer, who is a qualified person
for the purposes of the AIM Guidance Note for Mining, Oil and Gas
Companies. Mr Maris is a petroleum engineer with 35 years'
experience in the oil and gas industry. He has a B.Sc.(Eng.)
Petroleum Engineering (Hons) from the Imperial College of Science
and Technology (University of London) Royal School of Mines
A.R.S.M. and an MBA from Kingston Business School.
Note
On the 17 June 2021, the Company announced the UK's Oil and Gas
Authority (the "OGA") approval of the Lancaster Field Development
Plan Addendum (the "FDPA"). This approval, together with associated
production, flare, and vent consents, enables production with the
flowing bottom hole pressure up to 300 psi below the bubble point
pressure of the fluid (1,605 psia at 1,240 metres TVDSS). These
consents are subject to quarterly reviews of operating procedures
to ensure gas liberated in the reservoir is not produced.
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END
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