Hurricane Energy reported on Tuesday that its previous resource estimates of the Lancaster field west of Shetland Islands had been ‘conservative’. The company now expects an uplift in the field’s resources.
Hurricane said that the previously published minimum oil down from the Lancaster 205/21a-7 well of 1,620m TVDSS had been revised to a best case oil-water contact (OWC) of 1,678m TVDSS, with an associated hydrocarbon column height of more than 670m TVDSS.
The interpretation is based on the integration of wireline sample oil analysis, wireline logs, gas chromatography data, sidewall cores, and the integration of Lancaster pressure and fluid data. The revised OWC (1,678m TVDSS) can be correlated with the company’s previously held high case OWC from the 205/21a-4 well (drilled in 2009)
The company stated it believes that the revised 205/21a-7 OWC can be treated as a flat OWC for the Lancaster field. As such, its previous management resource guidance for the Lancaster field of more than 300 million barrels is seen by Hurricane as conservative.
The firm is of the opinion that the forthcoming CPR on the Lancaster field would result in a material uplift in contingent resources as well as the anticipated reserves associated with the planned early production system.
The reported flow rate at Lancaster 205/21a-7Z well of at least 14,500 STB/day has been refined to a maximum stable rate of 15,375 STB/day using an ESP, following third party interpretation of the flow meter data.
In November 2016, Hurricane signed heads of terms with Bluewater Energy for the use of the Aoka Mizu floating production storage and offloading vessel (FPSO) on the Lancaster field.
Lincoln & Warwick
The ODT in the Lincoln discovery of 2,258m TVDSS demonstrates that it is a separate hydrocarbon accumulation to Lancaster, with the Lancaster field and Lincoln discovery being separated by the Brynhild Fault Zone.
Hurricane said that the separation of Lancaster from Lincoln has no impact on resource estimates for Lancaster and that the ODT at Lincoln has provided the company with sufficient evidence to believe that the undrilled Warwick prospect is most likely part of a large basement feature comprising both Lincoln and Warwick.
Should these interpretations be confirmed through further drilling and testing, Hurricane said it will assign the Lincoln/Warwick accumulation a separate field status to Lancaster.
The company’s revised interpretation of the 2016 Lancaster 7 and 7Z wells will contribute to the data currently being evaluated by RPS Group for its CPR on the Lancaster field. The Lancaster CPR is planned to be completed in the first quarter of 2017 and is the first stage in a re-evaluation of Hurricane’s assets.
Hurricane added that a full resource evaluation would be made available after the data from the Lincoln well and the ongoing Halifax well operations have been interpreted.
Robert Trice, Chief Executive of Hurricane, said: “The updated data from the Lancaster 7 and 7Z wells reinforce our belief that the Lancaster field is substantial. The Lancaster CPR due at the end of the first quarter of 2017 will quantify the resources ahead of FID for the Early Production System due at the end of the first half of 2017.
“We are delighted by the result of the Lincoln Well and that the Brynhild fault separates the Lincoln/Warwick single accumulation from Lancaster and Halifax. We now await the results of the Halifax well which is designed to evaluate our exploration model which describes Lancaster and Halifax as a single hydrocarbon accumulation.”