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Warwick & Lincoln 3 wells drilling 2020

lse:hur

#1

Warwick West well should shortly be suspended as a future producer, as was Lincoln Crestal previously. Operations on the three 2020 wells are due to start on 15th February 2020. HUR has booked the Paul B Loyd Jnr (PBLJ) rig for the drilling campaign. The PBLJ is currently in the North Sea and has been working on behalf of BP. It looks as if that contract is ending and the PBLJ is going to move this weekend probably for a two and a half month lay up and maintenance in a Scottish port.
The locations for these 2020 GWA drilling sites has probably still to be determined between Hurricane and Spirit and there is lots of news to come regarding the development plan for the GWA. The Lincoln Crestal well also has to be completed and tied back to the FPSO in 2020. It a guessing game as to where the three wells will be drilled, but I will guess two on Lincoln and one on Warwick.


#2

Possibly another on Lancaster? perhaps a new one in Halifax at a location within tieback to AM?


#3

Please let them crack (!) Halifax.


#4

Paul B Loyd Jnr rig started its move this morning from its completed contract in the North Sea. Currently heading North East so looks as if its off to Norway for maintenance for a couple of months.


#5

PBLJ now confirmed as heading to Olen in Norway. Olen looks to be a major sheltered rig handling port. Pics pop up when you search.


#6

PBLJ now safely moored next to quayside at Olen. Expect to see it depart weekend of 8th February 2020 for GWA.


#7

Hurricane in the market for two supply vessels, 250 days commencing 15 February.


#8

2 December 2019

Hurricane Energy plc

(“Hurricane” or the “Company”)

‘Warwick West’ 204/30b-4 Well Result

&

Lancaster Operational Update

Hurricane Energy plc, the UK based oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, reports the results of testing of the 204/30b-4 (“Warwick West”) well and provides an update in relation to the Lancaster Early Production System (“Lancaster EPS”).

Highlights

– Warwick West
o Discovery of light, 43deg API oil

o Maximum stable flow rate of 1,300 bopd on natural flow

o Third horizontal well to be drilled and tested in 2019 programme

o Programme currently within time and budget forecasts

– Lancaster EPS
o 2.5 million barrels of oil sold across six cargoes to date

o Production in line with guidance for Q4 2019 of 11,000 bopd

Warwick West Result

The Warwick West well was spudded on 24 September 2019 and was drilled to a total depth of 1,879 m TVDSS. It intersected a 931 m horizontal section of fractured basement reservoir.

The well flowed for a total of 85 hours in a number of flowing periods at variable rates, using both an electric submersible pump (“ESP”) and under natural flow, while work continued to clean the well and evaluate reservoir performance. A stable rate using an ESP could not be reliably measured as the well was still in the process of cleaning up. After an extended pressure build-up period, a final flow period was conducted under controlled natural flow conditions which achieved a stable, sustainable rate of 1,300 bopd with evidence of the well having cleaned up further. During this flowing period, less than 0.5% water was produced.

Initial analysis of oil samples indicates a light, 43deg API oil. Further technical analysis of PVT fluid samples will now be carried out. This will include comparing the geochemical signature of oil from Warwick West with oils procured from Warwick Deep and Lincoln Crestal.

Warwick West is the third and final well of the 2019 programme on the Greater Warwick Area (“GWA”) which has been carried out using the Transocean Leader semi-submersible rig. In accordance with regulatory requirements, the rig will now plug and abandon the well before demobilising.

Hurricane and its joint venture partner on the GWA, Spirit Energy, are currently evaluating the results of the three wells drilled and tested in 2019. Further technical analysis will be required to determine the impact on the potential for the GWA to be a single accumulation, and on volumetrics.

Lancaster EPS Operations

On 14 November the sixth cargo of crude oil from the Lancaster EPS was lifted, taking total oil sales to 2.5 million barrels since First Oil in June 2019. Average production for the remainder of the year is expected to continue to be in-line with guidance for Q4 2019 of approximately 11,000 bopd, constrained by system availability and data gathering requirements.

As part of the data gathering exercise for the Lancaster EPS, the Company has been carrying out periods of production from the 205/21a-6 and 205/21a-7Z wells separately, to assess fluid dynamics and measure reservoir performance without the impact of interference from the other well. An interim update will be made when these flow periods have been completed, which is expected to be later in December 2019.

Dr Robert Trice, Chief Executive of Hurricane, commented:

"We are pleased to have made another discovery with the Warwick West well. The flow test results confirm the presence of light, mobile oil.

"The impact that this well will have on how the Company views the GWA accumulation and its associated volumetrics will require further technical analysis. The GWA joint venture is now assessing the optimal appraisal strategy for the GWA, and Hurricane will provide an update in due course.

"Further progress is also being made in our understanding of the Lancaster reservoir. Uninterrupted vessel uptime combined with good well productivity have allowed us to carry out additional data gathering whilst remaining in line with guidance for Q4 2019. We will provide a further update later in December.

“In 2019 we have generated a wealth of new data from both the GWA and Lancaster and I look forward to presenting our findings in detail at our proposed Capital Markets Day in Q1 2020.”


#9

Bur why “Plug and abandon”?


#10

Anyone understand why this share price has taken a beating? I don’t understand it at all…


#11

Regulation. The well has to be secured as no approvals or plans for it to be completed as a producer ahead of the technical analysis.


#12

So essentially we are waiting for a Technical Analysis on the well? . Apologies for my lack of knowledge on the subject. This well was basically drilled primarily then to understand the resivoir better?


#13

________⭐️


#14

Lol thanks Riverside Red but I’m still mighty confused. Surely at 1300 per day this is a duster. That maybe why the market has reacted in this way?


#15

Flowed at 1300bbls a day naturally. The producers utilise submersible pumps.
It appears to be commercial as a tie back.
The oil is a little lighter than Lancaster.

I bought a few more.


#16

I thought as much… That’s why I was so confused as to the share price reaction - the market usually overreacts somewhat… But a 25% initial drop…wow…i still belive we have intrinsic value in this company but its just hard to watch when we take 25% hits like that. If they use a pump, we would of course see a better flow rate, i wonder if the market reaction would have been a little different if the pumped flow rate had been verified…? Nevertheless it’s not terrible news I suppose, if the oil has the same chemical signature as W.D surely that will be excellent news would you agree??


#17

I always understood that a plug and abandon meant abandoned and left forever. If planning to return to the well the term plugged and suspended is usually used? I guess we will have to wait until the further update at the end of December for any clues as to whether HUR will return to Warwick West well. I was expecting the end of December update to focus on Lancaster and Halifax production and development. As far as I can assess I would expect the initial 6 months uninterrupted testing to end in February leaving the way open for 20,000 bpd production for the rest of 2020.
Only a couple of months for HUR and Spirit to decide where to drill next.


#18

Gosh Squinn, see you in 3 years when this is worth £5+ hope you’re not too confused by everything to count beyond 12p. Careful out there, lots of nasty posters pretending to be ever so genuine!


#19

Save your money and hold for 18p or there abouts, it’s coming IMHO. Earlier this year I said I would take a punt at or around 30p, I am quite few months late on this but we are now heading in that direction and below. This share has had its day and it has been shown that there is very little faith (by the markets) in the longevity of of FB ops here in the UK while there is still plenty of conventional recoverable HC’s available in all sectors of the North Sea and WoS. I was glad to get out at various SP levels between mid to late 40’s and made acceptable profits starting at at between 11p - 13p in 2013/14 and upto 19p a little later. I had great expectations for this share but now have zero faith it will realise above 65p at best no matter what great news it provides and achievements it makes. The market people know they have a share they can manipulate, trade and make lots of money between the 38 -48p range and now they are widening the window to make even more money.
Just be aware of those with prophecies of £5+ it is just pure fantasy now.
All above IMHO but, good luck in any case.


#20

Empy_Sporran

Squinn is not who you think he is, he’s playing the naive poster but I’m not fooled.

“Just be aware of those with prophecies of £5+ it is just pure fantasy now.”

The truth is I really don’t think anyone understands where this is headed long term - 65p to £6 - frankly, it’s all possible until we have the data and clear news on FFD.
I’ve reduced my holding here, sometimes at a profit, sometimes at a loss, considerably over the last year having seen the constant manipulation at play. I agree it’s possible this might dip down to further lows - I didn’t think we’d ever hit the 30’s - so why not 20p?
No-one should be putting money in here they can’t afford to lose that much I now certainly agree on.