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Warwick & Lincoln 3 wells drilling 2019

lse:hur

#102

Wizard,

“Don’t know why but the market has taken the SP below 50p!”

Probably a few folk taking some profit before the next stage … will be a while till First Oil, evidently the 22 day guidelines stated in a recent Energy Voice article just refer to standard commissioning timelines. We’re probably looking toward the end of May before serious investors get in and stay in for the rise to £1/£2/£3 etc … in the long term (and hopefully no more than 1 to 2 years from now. That’s my take but only imo.


#103

@Albi1
We’re probably looking toward the end of May before serious investors get in and stay in for the rise to £1/£2/£3 etc … in the long term (and hopefully no more than 1 to 2 years from now. That’s my take but only imo.

Albi1, that makes a lot of sense to me, so I like it. But in keeping with your caution on opinion, everyone should dance to his/her own music as we are all ‘guessing’ at this game and drawing conclusions to the best of our own fallible ability. I too, will take some profits off the table if I see a worthwhile opportunity to do so. Tried it once with 75,000 units with a so-so outcome - could have been much better or much worse - that was more luck than knowing design. Kr, A. - LLV


#104

Do not believe all you read, there is a self-professed “drilling genius” on the LSE board telling all and sundry that the GWA wells will be the same as the Lancaster 205/21a-7Z well; vertical to OWC, back filled, then sidetracked.

This is not the case, Hurricane has stated several times that the GWA wells will be horizontal. Indeed you can even find a picture of them in the presentations to confirm this.


#105

A non genius here… out of curiosity how will we determine OWC without a vertical well? I thought this could only be done with the drill bit.

OWC is a pretty damn important thing to know.

edit: I’m particularly talking about Warwick Deep here, Lincoln will be an appraisal but cannot remember of we got an OWC.


#106

If you look at page 14 of the Year End Presentation you will see horizontal wells, when Hurricane drilled a vertical well backfilled it and sidetracked they classified it as two wells. You will also see on page 14 the ODT figures for Hurricane and RPS.

There is a difference of 149m between these figures, this would take the 2C (604m barrels) towards 3C (1537m barrels).

Yet Hurricane are not drilling to the OWC, I can only put this down to the fact that Hurricane are no longer interested in barrels of 2C and CPR’s, but only 2P. Notice the emphasis on 2P increasing to 100m barrels on page 10 of the presentation.


#107

Not only do they want the 2Ps this year, but they want the three wells to be producers. As soon as they have success on the first one, ie similar to the GLA wells - each capable of up to 20,000 bpd, I think they will go for a second FPSO, like the Bleo Holm that can handle up to 100,000 bpd. As already suggested they may also make use of the under used Solan field facilities. The three wells in 2020 can be used to push the boundaries of the field for big upside in 2Ps and 2Cs. If they can get an FPSO with a turret mooring system, or modify alternative system FPSO to turret mooring, the FPSOs become interchangeable to suit.
IMHO


#108

3 vessels now allocated for the rig move
http://www.dof.no/en-GB/DOF-Fleet/AHTS/Skandi-Bergen
HTTP://www.siemoffshore.com/Default.aspx?ID=197
https://www.balticshipping.com/vessel/imo/9447964

Normand Drott has wrov


#109

Thanks laser, looks like the rig moving during this weekend. Good news.


#110

So here’s an article from Energy Voice on Spirit and Hurricane GWA deal.

I have a question re. this article relating to: “At the development stage, Spirit would take over as licence operator.” - What does that mean for shareholders of Hurricane? Do we profit from that? (may be a stupid question but clarification appreciated).

Excerpt of key points from article below (https://www.energyvoice.com/oilandgas/north-sea/196244/from-pregnant-pause-to-promotion-for-north-sea-oil-boss/)

"When the GWA deal was announced in September, the partners intended to drill an appraisal well on Lincoln and two exploration wells on the adjacent Warwick prospect, with Spirit covering 100% of the cost.

If successful, one of the initial wells will be tied back to the Aoka Mizu floating, production, storage and offloading (FPSO) vessel, which is also being used for Hurricane’s wholly-owned Lancaster development, and was moored at the field last month.

A further three appraisal wells and a full field development of the GWA could follow.

Spirit would cover half of Hurricane’s costs for the tie-in of the well to the FPSO and pay a bonus of between £115m-£190m towards Hurricane’s costs of the full field development.

At the development stage, Spirit would take over as licence operator.

Drilling was initially expected to begin in the first quarter of 2019, but the campaign was set back by a few weeks because EnQuest hadn’t finished with the Transocean Leader rig."


#111

Here we go…

HAVILA JUPITER changed the reported Destination
From: MONTROSE
To: INVERGORDON
with ETA: 2019-04-04 04:30 UTC

SKANDI BERGEN changed the reported Destination
From: BERGEN
To: MONTROSE
with ETA: 2019-04-05 02:00 UTC


#112

Albi, FEED front end engineering and design should start in Q4 2020. If the first three GWA wells are successful this year, then a decision will be taken to drill three more in 2020. If the results of the 6 well drilling are good then you would expect HUR and Spirit to press the go button to move the GWA field into FFD full field development. Spirit joined the party on the understanding that FFD will happen asap if the wells are successful. HUR does not want to be an operator of producing fields, HUR has great confidence in Spirit Energy`s ability to deliver the necessary infrastructure to develop and operate the field. It is likely that FEED will actually start in Q1 2021 HUR simply hand operatorship over to Spirit having had design and technical input, then takes a back seat, probably to get on with what HUR does best - exploration. So the simple answer is that HUR will not benefit financially, but will benefit from being free to undertake further frontier exploration knowing the development of their 50% interest in GWA is in safe hands. HUR may also be looking for a similar arrangement for the GLA licence. Lets hope such an arrangement is much better financially than the GWA deal with Spirit was, if so HUR will have the financial clout to bid for new frontier licences and start fresh exploration drilling so much sooner than originally thought.
IMHO


#113

`HUR will not benefit financially’ presumably means there will be no fee payable to HUR but HUR retains a 50% interest in GWA i.e. 50% of the income stream from GWA will accrue to HUR so there should be a considerable income per annum over the next few decades. That sounds a reasonable deal in return for Spirit investing in the necessary infrastructure to bring GWA into production.

GLA is different in that it will shortly be producing and could presumably bootstrap itself into full production although it would take a lot longer than it would using Spirit’s deep

Flockets


#114

Thanks for your considered and helpful response Bobsson, like Flossoffa I pick out the key point for me which is :

“HUR will not benefit financially, but will benefit from being free to undertake further frontier exploration knowing the development of their 50% interest in GWA is in safe hands.”

I was beginning to wonder if perhaps I should be buying shares in Centrica as well …


#115

“50% of the income stream from GWA will accrue to HUR so there should be a considerable income per annum over the next few decades.”

Thanks for highlighting Bobsson’s point Flossoffa.


#116

Remember that HUR have a free carry of $250 million from Spirit for GWA FFD . So the first $500 million in costs are free but after that HUR has to pay development and running costs on a 50/50 basis.
IMHO


#117

NORMAND DROTT changed the reported Destination
From: MONTROSE
To: WARWICK DEEP
with ETA: 2019-04-05 20:00 UTC


#118

Looks like rig is about to leave Invergordon.


#119

TL on the move.
I’ve just bought a few more shares for my ISA :grinning:


#120

Siem Opal has an ETA Warwick Deep 1100 on Thursday. Helicopters booked for 1300 that day and 1030 Saturday, no destination


#121

TL now arrived at destination - port of Cromarty anchorage!
Oh well, maybe next time.
At least the refit must be done.