Hurricane Energy completes pilot well in UK

Source: Hurricane Energy

Hurricane Energy, the UK based oil & gas company, has completed the testing and logging phase of the 205/21a-7 well and operations are now progressing as planned.

Hurricane Energy plc, the UK based oil & gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, announces that the Company has completed the testing and logging phase of the 205/21a-7 well (the "Pilot Well") and operations are now progressing as planned to permanently abandon the Pilot Well reservoir section prior to side-tracking the top-hole to form the 7Z horizontal sidetrack (the "Horizontal Well"). The information below is preliminary and will be updated following detailed analysis once the final well data and reports have been received and analysed.

Preliminary third party analysis from the Pilot Well indicates:

·     A very significant hydrocarbon column of at least 620 metres is present within the basement extending well below structural closure (which is 1,380 metres TVDSS) confirming Hurricane's reservoir model for the Lancaster field.

·     Provisional analysis indicates a minimum oil down to ("ODT") at 1,620m TVDSS, 240 metres TVD below structural closure. In addition, wireline fluid samples have demonstrated mobile oil of a gravity consistent with Lancaster oil to a depth of 1,646 metres TVDSS.

·     The penetrated aquifer interval is porous and permeable.

·     Wireline and well test data indicates that there are no pressure barriers detected in the reservoir.

·     DST testing of the basement reservoir yielded a maximum, natural flow rate of 6,600 bopd and a maximum flow rate of 11,000 bopd (artificial lift with an electrical submersible pump) of good quality 38 API oil with no formation water produced. This flow is interpreted as predominantly emanating from a single fracture zone connected to the underlying basement. 

The next stage of operations involves drilling of the Horizontal Well. This is designed to provide a second future production well and additional information to help optimally plan the Lancaster field development.

Hurricane will announce its interim results on 22 September 2016.

Dr Robert Trice, Hurricane's CEO, commented "I am delighted that the Pilot Well has confirmed a significant oil column deeper than the 2C Case set out in the Company's CPR. Our initial assessment of the well results, which are subject to refinement of the provisional data, suggest that the Lancaster field is likely to be significantly greater than the 200mm bbls 2C case.

The combination of high flow rates, an extensive oil column and underlying aquifer materially de-risks Hurricane's plans for a future Lancaster field development and further underlines the potential of the fractured basement West of Shetland."

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