UK offshore oil player Hurricane Energy has been given a boost after RPS Energy Consultants released a Competent Person’s Report on Hurricane’s crown jewel – the Lancaster field, West of Shetland.
The CPR attributes 2P reserves (the sum of proved and probable reserves) for the first time and details a significant increase in certified contingent resources.
The Hurricane-operated Lancaster field is located approximately 100 km west and 105 km north of the closest Shetland and Orkney Islands, respectively, and 170 km north of the Scottish mainland.
According to the CPR, best estimate recoverable volumes at Lancaster is 523 million barrels of oil, an increase of 162% compared to the 2013 CPR 2C contingent oil resource figure of 200 million.
Furthermore, CPR attributes 2P reserves of 37.3 million barrels of oil attributed to the initial six-year period of the planned Early Production System (“EPS”) at Lancaster.
The remaining 484 million barrels are classified as 2C Contingent Resources as ‘Development Unclarified or On Hold’ whilst the EPS assesses full field development potential.
Should Hurricane extend the EPS to ten years, 2P reserves volume would rise to 62.1 million barrels. Best estimate of oil in place of over 2.3 billion barrels of oil, an increase of 120% compared to the equivalent 2013 CPR figure.
Also, a Net Present Value NPV of $525 million is attributed to the 2P reserves for a six-year EPS at a 10% discount rate.
Robert Trice, Chief Executive of Hurricane, commented: “We are delighted to now have independent verification of the highly material uplift in the resources we have at Lancaster. It is also a landmark for Hurricane to have reserves assigned at the field relating to our planned EPS, for which we continue to advance plans, maintaining our target for first oil of H1 2019. We expect to publish CPRs relating to Halifax and Lincoln later in 2017, which we are confident will be a material addition to our already significant resource base.”
The Bluewater-owned FPSO Aoka Mizu was selected in November 2016 to be used as the early production system for the Lancaster field. Following the signing, Hurricane and Bluewater started a second phase FEED study, expected to be completed in early 2Q 2017. The unit will be held on location by a turret mooring system. Produced oil will be stored on the FPSO and exported to Shetland via a shuttle tanker.
Hurricane plans to start the re-entry and completion of the wells in spring 2018. Installation of both the subsea infrastructure and the FPSO mooring system is then expected to be completed in the second and the third quarters of 2018, prior to the arrival of the FPSO to the field.
Installation, hook-up and commissioning of the FPSO is expected to start towards the latter part of this construction period. The first oil is targeted for the middle of 2019, although it is possible it could begin as early as the end of 2018, the operator said.
The first phase of the development is planned for a period of six years.
Offshore Energy Today Staff