Hurricane Energy plc: Lancaster EPS First Lifting and Oil Sales
Tuesday 18 June 2019
Hurricane Energy plc, the UK based oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, provided an operational update in relation to the Early Production System development of the Lancaster field ("Lancaster EPS").
On 18 June 2019, Hurricane sold its first cargo which was lifted from the Aoka Mizu FPSO by the Amundsen Spirit shuttle tanker. The cargo was marketed by BP Oil International Limited, pursuant to the offtake agreement.
Dr Robert Trice, Chief Executive of Hurricane, commented:
"First lifting from the Lancaster EPS marks the generation of Hurricane's first revenue. We are now building the cash flow necessary to invest in the further appraisal and development of Hurricane's basement assets."
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 on 4 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.