The event will be hosted by Company CEO Dr Robert Trice and CFO Alistair Stobie. It will include presentations of data on the start-up process of the Lancaster Early Production System and the ‘Warwick Deep’ well.
Thus far, highlights from the wells included news that the Lancaster EPS start-up phase yielded ‘World class’ productivity indices of 205 stb/d/psi and 190 stb/d/psi on the -6 and -7Z wells. Further, the Company noted that the EPS also reached its target aggregate EPS stabilised production rate of 20,000 bopd on natural flow.
The Warwick Deep well yielded less positive results, “Hurricane’s initial analysis indicates that the well intersected a poorly connected section of the fracture network within the oil column. The well did not flow at commercial rates producing a mixture of drilling brine, water, oil and gas. The decision was therefore made to plug and abandon the well.”Hurricane Energy comments
On the update, Company CEO Dr Robert Trice attached the following insights,
“I am delighted to be providing an update to the market today. As expected, 2019 is proving to be a transformational year for Hurricane, as we significantly progress the technical and operational platform on which to grow the business further.”
“The Lancaster EPS start-up phase went smoothly and achieved its data objectives. The world class productivity of these wells means that we were able to achieve the desired rates with small chokes and without ESP-support. This bodes very well for future production efficiency and costs.”
“We’ve always said that it would take 6-12 months of stable production before we can establish whether the Lancaster EPS is performing as we predict in our base case model. This continues to be the case.”
“We are encouraged by the Warwick Deep well, despite the penetrated fracture system not supporting a commercial oil flow rate. Hurricane’s assessment of data acquired during drilling and testing indicates that the well encountered a significant oil column on the Warwick structure. Our initial analysis indicates an OWC consistent with pre-drill predictions. Confirmation of our provisional analysis will require data from the remaining 2019 drilling campaign, as well as fluid sample analysis from Warwick Deep. Importantly, we have evidence that suggests to Hurricane that the result at Warwick Deep does not have negative read-across to Lancaster or Lincoln.”
“We are about to spud Lincoln Crestal which, in the case of demonstrating successful flow rates, will be a tie-back candidate to the Aoka Mizu.”
“Looking ahead, we’ve updated our Lancaster EPS production guidance by adding an upside scenario from 2020 onwards, based on the many positive indications we’ve seen to date. We are tracking in line with production guidance for 2019 and are generating significant cash for reinvestment in future activity. Our phased Rona Ridge development continues with strong momentum.”
