Hurricane Energy plc said that its full year production guidance would be near the upper end of guidance 8,500 – 10,500 bopd from the Lancaster field, West of Shetland.
FPSO
“This annual guidance is based on an FPSO production uptime assumption of 90% and production from the P6 well alone on artificial lift via ESP,” said the company.
“The production uptime assumption of 90% includes the impact of the annual maintenance shutdown, evenly spread across the year.”
SIX-MONTH GUIDANCE
The company’s six-monthly production guidance, from 1 October 2021 to 31 March 2022, is slightly lower at 8,500 – 10,000 bopd.
This is due to the expected gradual production decline over time from the reservoir, which is partially offset by the higher FPSO uptime assumption.
UNCERTAINTY
Hurricane estimates that wellhead flowing pressure in the Lancaster reservoir may reach the bubble point by the end of Q1 2022.
“Whilst this has been factored into the guidance for the period, there will remain a degree of uncertainty regarding the full impact of this, along with the risk that gas liberated from the reservoir could be produced which could result in production either being reduced or ceased altogether,” said the company.
OIL PRICES
Chief executive Antony Maris added that the company had benefited from higher than expected oil prices and “excellent” performance to date of the FPSO.
“As a result of the combined efforts of the Hurricane and Bluewater teams, we anticipate being towards the upper end of our production guidance for 2021 and this is also reflected in our guidance for the next six months to 31 March 2022.”