Update Re. Licence P1368

Released : 09/11/2015 07:00

RNS Number : 9423E
Hurricane Energy PLC
09 November 2015
 

Embargoed: 0700hrs 9 November 2015

Hurricane Energy plc

("Hurricane" or the "Company") 

Update Re. Licence P1368

Hurricane Energy plc, the UK-based oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, is pleased to announce that the UK Oil and Gas Authority ("OGA") has approved a subdivision of Licence P1368, West of Shetland, into four subareas as follows:

P1368 Central - containing the Lancaster basement discovery

P1368 North - containing the Whirlwind basement discovery

P1368 South - containing the Lincoln basement prospect

P1368 Southwest - containing the Strathmore sandstone discovery

 

Additionally, the OGA has granted a two year extension on its requirement for the drilling of an exploration well on the Lincoln basement prospect, located in Block 205/26b in P1368 South, until 31 December 2019.

Dr Robert Trice, Chief Executive, commented:

"The licence subdivision is a further important step in the progression of Hurricane's assets as it provides greater flexibility as we progress the options to farm-down our interests in discoveries or prospects within the original P1368 licence."

Contact Details:

Hurricane Energy plc

Dr Robert Trice

Chief Executive Officer

+44 1483 862 820

comms@hurricaneenergy.com

www.hurricaneenergy.com

Cenkos Securities plc

Derrick Lee

Nick Tulloch

+44 131 220 6939

dlee@cenkos.com

ntulloch@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 444-470 Mmboe of 2C Contingent Resources and 432-442 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. 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 access a material new 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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