Hurricane Energy plc announced it had ruled out drilling during summer 2021 and was looking at three other options for further activity on its 100% owned Lancaster field.
In December 2020, the offshore hydrocarbon company, focused on naturally fractured basement reservoirs, said it would engage with its stakeholders including an ad hoc group of convertible noteholders, on the future of Lancaster.
Hurricane today said that discussions continued on a forward work programme, strategy, financing and balance sheet recapitalisation of the UK’s first producing basement field.
The company had previously considered a second production well in 2021 by side-tracking from the existing 205/21a-7z well into the central area of the field.
Hurricane today said: “This proposed side-track is more complex in nature than previous wells on Lancaster due to the incorporation of an intelligent completion and the challenges of delivering the well trajectory from the side-track location.
“As a result, the company has concluded that it will not be possible to drill this well during the 2021 summer weather window without unacceptable operational and cost risk.”
Other options now include drilling the side-track in 2022 following further planning activity during 2021; drilling the side-track together with the previously contemplated water injection well as a combined programme in 2022; or drilling the side-track in 2022 and the water injection well in 2023.
“All options for potential further development activity are subject to factors which are or may be outside the company’s control which include field performance, prevailing oil prices and support from relevant stakeholders and counterparties,” the company added.
HISTORY
Hurricane Energy’s acreage is concentrated on the Rona Ridge, in the West of Shetland region of the UK Continental Shelf.
The company is working on a phased development of Lancaster, starting with an early production system consisting of two wells tied-back to the Aoka Mizu FPSO [floating production storage and offloading (unit)].
Hydrocarbons were introduced to the FPSO system on 11 May 2019 and the first oil milestone was achieved on 4 June 2019.
In September 2018, Spirit Energy farmed-in to 50% of the Lincoln and Warwick assets, committing to a phased work programme targeting sanction of an initial stage of full field development.