Hurricane proves Halifax linked to Lancaster field

UK offshore operator Hurricane Energy has found oil at the Halifax well off the Shetland Isles.

What is more, the company has confirmed that the initial data analysis indicates Halifax is linked to the Lancaster field forming a single large hydrocarbon accumulation.

The main purpose of the Halifax Well was to support the Company’s view that the Lancaster Field and the Halifax prospect are one large connected structure; well results support the company’s opinion.

Hurricane said that preliminary third party analysis from the Halifax Well indicates: a very significant hydrocarbon column of at least 1,156 metres is present within the basement extending well below local structural closure (which is at 1,040 metres TVDSS); that the basement reservoir below the final casing point (1,179m TVDSS) is pervasively fractured (based on initial analysis of borehole image logs processing); and that porosity is consistent with that at Lancaster (based on initial petrophysical analysis.

The Transocean Spitsbergen rig has demobilized and is no longer on hire to Hurricane.

Robert Trice, Hurricane’s CEO, said: “This is a highly significant moment for Hurricane and I am delighted that the Halifax Well results support the company’s view that its substantial Lancaster discovery has been extended to include the Halifax licence. We believe that the GLA is a single hydrocarbon accumulation, making it the largest undeveloped discovery on the UK Continental Shelf.

He said the discovery of a 1 km hydrocarbon column at Halifax validated the efforts the company undertook to acquire the licence and drill, test and log the Halifax Well through the winter months.

“Given the positive well results, the Halifax Well has been suspended to provide the company the option to return to undertake further testing as well as provide the option to deepen the well and thereby establish a definitive oil water contact.

The end of the Halifax well marks the completion of the 265 days during which Hurricane has had the Transocean Spitsbergen rig on hire. The company has successfully drilled one development (Lancaster Sidetrack), one appraisal (Lancaster Pilot), one intervention on the 2014 horizontal well (in preparation for well completions in Q2 2018) and two exploration (Lincoln and Halifax) wells. We have now completed the well stock for our Early Production System (“EPS”) and in the process materially increased and de-risked the resource volumes associated with Lancaster.

The exploration wells on Lincoln and Halifax have resulted in the discovery of extensive oil columns and we therefore expect that later iterations of our CPR will significantly upgrade our resource base on both the Greater Lancaster and Greater Warwick Areas.

I would personally like to thank Transocean whose pragmatic approach to commercial and contractual negotiations have been a breath of fresh air in today’s tough industry environment, and have facilitated Hurricane’s successful campaign during a time when UK exploration and appraisal drilling has been at a low. We have created a great partnership and I look forward to successfully continuing this relationship.

“The Lancaster CPR is due imminently and FID for the Lancaster EPS remains on track for the end of H1 2017. We will process the data from the Lincoln and  Halifax wells and expect to release updated CPRs towards the end of 2017. These are exciting times for Hurricane.”

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