Drilling Update on Lancaster Well

Released : 09/06/2014 07:00

RNS Number : 1096J
Hurricane Energy PLC
09 June 2014
 

Embargoed: 0700hrs 9 June 2014

 

Hurricane Energy plc

(the "Company")

 

Drilling Update on Lancaster Well

 

Hurricane Energy plc, the UK-based oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, is pleased to announce that it has completed the drilling phase of the ongoing operation to drill and test a horizontal appraisal well on its Lancaster discovery, West of Shetland. The well has been drilled to plan and a one kilometre horizontal section through the basement reservoir is now being prepared for testing.

 

Commenting from the Transocean Sedco 712 drilling rig, Dr Robert Trice, Chief Executive Officer, said:

 

"I am pleased to report that Hurricane has successfully completed its drilling phase of the reservoir section. The planned operation has gone well and we have succeeded in drilling the one kilometre horizontal section in the fractured basement structure. I am extremely encouraged by the data so far acquired as it indicates that the target fault zones are present and that the encountered section is fractured and oil bearing. Operations have now switched focus to the preparation for the well testing phase of this operation."

 

A further announcement will be issued in due course.

 

-Ends-

 

Contact Details:

Hurricane Energy plc

Keith Kirby,

Chief Administrative Officer

+44 1483 862 820

comms@hurricaneenergy.com

www.hurricaneenergy.com

Cenkos Securities plc

Derrick Lee

Beth McKiernan

+44 131 220 6939

dlee@cenkos.com

bmckiernan@cenkos.com

Media enquiries:

Vigo Communications

Patrick d'Ancona

Ben Simons

+44 20 7016 9573

+44 20 7016 9574

hurricane@vigocomms.com

 

 

Notes for Editors:

Hurricane is an oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs. The Company's focus is to discover, appraise and develop oil reserves in basement rock and has successfully found oil on the UKCS. The Company has circa 450 MMboe of 2C Contingent Resources and 440 MMboe P50 Prospective Resources on acreage it controls 100% under licences P1368, P1485, P1835 and P1884.

The Group completed an IPO on the AIM market on 4 February 2014.

Strategy and Focus

The Group's primary objective is to increase shareholder value through the exploration, appraisal and development of fractured basement reservoirs. The Directors' strategy to achieve this is as follows:

1)            Concentrate on basement in proven petroleum systems

To date, the Group's basement exploration approach has been to focus on areas where oil had been found in basement structures by previous operators but not progressed on the basis that the prevailing opinion at the time was that such discoveries were not commercial. Once such potential areas have been identified, the Group undertakes a high grading process involving the evaluation of existing geotechnical data to establish if, and where, suitable prospects may be present.

The Directors believe this approach serves to reduce exploration risk on basement prospects by ensuring a working hydrocarbon system is present and by having available a comprehensive geotechnical database (both seismic and well data).

2)            Regional focus on West of Shetland

Hurricane has established an attractive portfolio of exploration and appraisal projects, focused on fractured basement prospectivity West of Shetland. DECC believes that the West of Shetland/Atlantic margin contains the most significant remaining UK resources yet to be discovered, at approximately 7.9 billion boe. This prospectivity has led to the significant interest generated by the 27th Offshore Oil & Gas Licencing Round. The Directors believe that the potential scale of the recoverable resource within these fractured basement reservoirs presents the UK oil and gas industry with a significant opportunity to secure a material strategic asset.

3)            Ownership and operatorship during exploration and early stage appraisal

Hurricane has maintained 100% ownership and operatorship of all of its assets to date. The Directors believe that this puts the Company in a strong position to invite other industry participants to participate in the assets and share costs, in preparation for field development that will lead to producing assets.

4)            Maintain an influential equity position

As Hurricane progresses the Group's assets towards development it intends to seek potential partners through a farm-out or other process to assist in future development and implementation of the FDP whilst maintaining an influential equity position.

5)            Opportunities to acquire exploration licences in existing and new regions

Hurricane intends to participate in applications for new licence areas where the Group will be able to apply its technical expertise in basement reservoir evaluation to create value for its Shareholders. The Directors believe that the Group's skill set and its track record to date leave it well positioned to secure further licences in countries with low geopolitical risk.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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