Hurricane reaches first oil and Lancaster

Hurricane has reached first oil at the Lancaster field. The Aoka Mizu FPSO completed the start-up phase with a 72-hour production test and combined production from the wells reached the targeted 20mbopd, marking the contractual completion of commissioning. Hurricane now expects to ramp up production over the next six months towards the longer-term ~85% operating efficiency target.

Production guidance is:

• c.9mbopd for the next three months; followed by 
• c.13mcopd for the subsequent three months;
• before reaching a sustained target of c17mbopd

This is another step forward in demonstrating the scale and deliverability of the fractured basement play in the UK North Sea on the Lancaster licence. However fractured basement plays are risky propositions and production could be short lived with water breakthrough at risk of occuring in short order. Therefore 12-24 months of production data is now crucial in order to fully understand the scale of the reservoir and importantly, sustainability of production.

Meanwhile drilling continues on the nearby Greater Warwick Area licence with partner Spirit Energy.