Hurricane raises reserves estimate and lowers guidance

editorial

3 years ago

Hurricane Energy plc has increased its estimate of reserves and reduced its production guidance at the Lancaster oil field, west of Shetland.

*Future: Hurricane looks to maintain the performance of both the well and the FPSO (Hurricane Energy)*

The company attributed the decrease to the impact of the annual maintenance shutdown in Q3 of the FPSO.

RESERVES

Hurricane said that the estimated increase in reserves was due to an improvement in the expected future production and to an increase in the economic life of the field.

ERC Equipoise Ltd’s competent person’s report (CPR) on the reserves is effective of 31 December 2021.

	1P	2P	3P	1P	2P	3P
Developed Reserves (MMbbl)¹	4.1	5.8	9.1	4.1	5.8	9.1
NPV10 (US$m)²	40.0	70.8	117.4	40.0	70.8	117.4

ERCE’s estimates of reserves for the Lancaster field as of 31 December 2021. Plain type is gross, bold type is attributable to Hurricane (Hurricane Energy)

2022 GUIDANCE

For the six months 1 October 2021 to 31 March 2022, Hurricane’s guidance was 8,500 – 10,000 bopd, with production at 9,689 bopd.

This was based on FPSO production uptime assumption of 96.5% and production from the P6 well alone on artificial lift via ESP.

Hurricane’s production guidance for the full calendar year 2022 is 7,500 – 8,600 bopd.

	Net attributable 2P Reserves (MMbbl)
At 31 December 2020	7.1
Produced during the year	(3.7)
Change in assumptions and economic life	2.4
At 31 December 2021	5.8

A summary of the movements in net attributable 2P Reserves as compared to the previous CPR (effective date of 31 December 2020) – Hurricane Energy

“This assumes FPSO production planned uptime of 96.5% and production from the P6 well alone on artificial lift via ESP,” said Hurricane.

“Guidance includes the impact of an annual maintenance shutdown, anticipated to occur during Q3 2022.”

	1C	2C	3C	1C	2C	3C
Contingent Resources, Development Unclarified (MMbbl)³	11.3	35.4	86.9	11.3	35.4	86.9

ERCE’s estimates of Contingent Resources for the Lancaster field as of 31 December 2021. Gross in plain type, net attributable to Hurricane in bold (Hurricane Energy)

OIL PRICES

“The efforts of the surface and subsurface teams in beating the mid-case performance target set at the start of the forecast period have been superb,” said chief executive Antony Maris.

“Together with excellent uptime across all elements of the system has allowed the company to benefit from the higher than expected oil prices and enabled more reserves to be added in the updated CPR.

“This supports management’s production forecast for the years to come.

“Going forward we look to maintain the excellent performance of both the well and the FPSO while we also focus on the company’s next steps.”