Hurricane Boosts North Sea Field Oil Estimates

Published at 09:35AM - 23/09/16

Hurricane Energy announced that the Lancaster field, one of the largest undeveloped fields in the UK North Sea, could hold bigger reserves than initially estimated.

The UK-based company working to bring the field online said the first well showed the Lancaster could be “greater than the 200 million barrel 2C case currently estimated”.

“Drilling of the horizontal sidetrack is underway and we look forward to reporting results of this later in the fourth quarter,” Hurricane Energy CEO Robert Trice, said.

Hurricane Boosts North Sea Field Estimates

The company will now have to complete an appraisal well to confirm its estimates, using the Transocean Spitsberger semi-submersible drilling rig.

According to the CEO, Hurricane Energy is now updating its resource model before producing an updated CPR.

Hurricane Boosts North Sea Field Estimates
Hurricane is using Transocean’s Spitsbergen to drill Lancaster

“We are delighted that wireline and well test data indicated that no pressure barriers were detected in the reservoir and that wireline samples of oil have been recovered to surface from deeper than our minimum oil down to case,” Trice explained.

Once the data is fully evaluated, he said, the company anticipates a significant resource upgrade of the reservoir.

West of Shetland Field to Come Online with FPSO

The Lancaster field is located West of Shetland and is expected to be developed using a floating production storage and offloading unit (FPSO).

On its latest operational update, the company informed it has completed an initial seabed and environmental survey of areas adjacent to the field.

Additionally, Hurricane Energy will need to raise additional cash and/or farm down its equity in Lancaster and its other assets to bring the field online.

“We expect that the data room will be reopened by the end of the year once all the data from the drilling campaign has been analysed,” the company informed.

In June, Hurricane had temporarily suspended farm-out discussions until it had completed drilling and analysing the Lancaster wells.