Hurricane Energy plc announced that production for the fourth quarter of 2020 was in line with expectations as the company continues to discuss with stakeholders options for the Lancaster field.
TRADING AND OPERATIONS
In its unaudited trading and operational report ahead of its results for year ended 31 December 2020, Hurricane’s revenue was $179 million and net free cash of $106m.
Production for the year ended 31 December 2020 was 5.1m barrels of oil (MMbbls), with an average of 13,900 barrels of oil per day (bopd), which was all sold across 12 cargoes.
Oil production for Q4 2020 averaged 12,700 bopd, which was lower than the third quarter.
Hurricane said this was primarily due to limiting production from the 205/21a-6 well to around 12,000 bopd in November 2020 for reservoir evaluation and management purposes.
Oil production from 1 September 2020 to 31 December 2020 averaged 12,500 bopd, within the guidance range of 12,000 – 14,000 bopd.
The company added that the Lancaster field continued to produce from the 205/21a-6 well alone, with current production of around 12,100 bopd on artificial lift and a water cut of about 25%.
The 19th cargo of Lancaster oil was lifted at the end of December 2020.
| Q3 2020 | Q4 2020 | Current | |
| Oil Production (MMbbls) | 1.25 | 1.17 | N/A |
| Average Oil Rate (bopd) | 13,600 | 12,700 | 12,100 |
| Water Cut2 | 26% | 25% | 25% |
POTENTIAL
“Production in line with expectations, a December lifting from Lancaster, and higher oil prices combined to deliver a $19 million increase in net free cash at year-end compared to end November 2020,” said chief executive Antony Maris.
“A continued recovery in oil prices would further enhance the significant value we see in our West of Shetland portfolio.
“As previously reported, we are currently engaging with our stakeholders on a proposed development plan for Lancaster and its associated funding, in order to maximise the potential value of our assets.”