Hurricane Energy plc announced a slight decrease in oil rate and production from its Lancaster field on the Rona Ridge, west of Shetland.
FINANCES
In a brief report for the first quarter of 2021, the company also recorded net free cash of $127 million compared with $106m at 31 December 2020.
LANCASTER EPS
Production during Q1 2021 was lower than the fourth quarter of 2020 due to a decision to reduce output from the 205/21a-6 well (P6 well) in November 2020 for reservoir management which resulting in a reduced rate of increase in water cut.
| Q4 2020 | Q1 2021 | |
| Oil Production (MMbbls) | 1.17 | 1.01 |
| Average Oil Rate (bopd) | 12,700 | 11,200 |
| Water Cut1 | 25% | 25% |
Other reasons for the lower output include a natural decline in the period and a temporary reduction in the production rate in early March 2021, which required an unscheduled well intervention.
Hurricane said that production efficiency during the first quarter of 2021 was 95% and had exceeded the planned assumption of 90%.
As part of the company’s periodic well testing programme for reservoir management purposes, the Lancaster field is currently producing from both the P6 and 205/21a-7z wells.
Immediately prior to the testing programme, the field was producing from the P6 well alone at a rate of circa11,600 bopd on artificial lift via electric submersible pump, with an associated water cut of 28%.
LIFTINGS
The 21st cargo of Lancaster oil was lifted on 17 March 2021.
The 22nd cargo has been sold and is due for lifting between the end of April and early May 2021.