Assets

Greater Lancaster Area

It is Hurricane’s view that Lancaster and Halifax have the potential to be part of a single, large accumulation, the Greater Lancaster Area (GLA). Hurricane owns 100% of the licences covering this accumulation, P1368 Central and P2308.

P1368 Central – Lancaster

The Lancaster Field is located in blocks 205/21a, 205/22a and 205/26b, licence P1368 Central. Hurricane has a 100% interest in this licence.

Licences

The Lancaster Field was discovered by Hurricane in 2009. It sits in relatively shallow water of around 160m. Hurricane is implementing a phased development on Lancaster using the two horizontal wells drilled on the structure. The first phase of the development, the Early Production System (EPS), came on stream in June 2019. The data acquired during the EPS phase of production will help optimise well locations for future development phases in order to maximise production from the field.  

The UK’s first ever exploration well targeted at a basement reservoir was drilled by Hurricane in 2009 on Lancaster. The well, 205/21a-4, discovered a pervasive fracture network and flowed light (38° API) oil to surface, demonstrating the viability of the Rona Ridge basement play.

Lancaster has been further appraised by inclined wells 205/21a-4Z (2010) and 205/21a-7 (2016) and two horizontal producers, 205/21a-6 (2014) and 205/21a-7Z (2016). Both horizontal wells have demonstrated that the reservoir is highly productive with PIs in excess of 140 stb/psi/d. 205/21a-6 flowed at 9,800 bopd using an electrical submersible pump (ESP) and 205/21a-7Z flowed at 15,375 bopd using an ESP. Both rates were constrained by the rig rather than the reservoir. 

RPS Energy's 2017 Competent Person’s Report (CPR) revised the 2013 CPR by taking into account data from the 2016/17 drilling campaign. The revised Lancaster CPR assigns 2P Reserves of 37.3 MMstb to the EPS, and a further 486.1 MMstb of 2C Contingent Resources(1) to the full field. In total, this attributes a Base Case recoverable resource of 523.4 MMstb to the Lancaster Field within the P1368 Central licence subarea.

     
Gross (100% basis) and Net Attributable Reserves and Resources (MMtsb)
      1P 2P 3P
P1368
Central
Lancaster  Reserves (6-year EPS) 28.1 37.3 49.3
Additional volumes from 7-10 year extension 16.4 24.8 39.4
Total  44.5 62.1 88.7
  1C 2C 3C
Contingent resources(1) 129.1 486.1 1,116.7

1 The Technical Committee of Hurricane’s Board is re-examining the full range of possible geological and reservoir models for the Lancaster field. The 2017 Competent Person’s Reports attributed independently certified reserves to the Lancaster EPS development and contingent resources associated with the overall West of Shetland portfolio. The outcome of the technical review may lead to a material downgrade of these contingent resource estimates. Any such revisions would be formally reflected in a new Competent Person’s Report, currently scheduled for release no later than the end of Q1 2021

P2308 – Halifax

The Halifax structure is located in blocks 205/22b, 205/23 and 205/24, Licence P2308. Hurricane has a 100% interest in this licence.

Licences

The Halifax discovery is situated on the Rona Ridge, northeast of Lancaster. It is Hurricane’s view that Lancaster and Halifax have the potential to be part of a single, large accumulation. A potentially sealing fault has been identified between Lancaster and Halifax by RPS in their 2017 Competent Persons Report. In either case, a significant volume of oil is present at Halifax, believed to be trapped by the Westray Fault Zone to the northeast.

Hurricane drilled inclined well 205/23-3A on Halifax in 2017 which had an extensive basement section of over 1.3km in length. A significant hydrocarbon column was encountered that extends well below the local 4-way dip closure and is potentially deeper than the oil column encountered on Lancaster.

Due to the basement being shallower at Halifax than at Lancaster, a gas cap is believed to be present at the crest of the structure. Further basement drilling is required to fully define the oil water contact on the Halifax Discovery. The image below shows the Lancaster free water level extending across both Halifax and Lancaster. 

In the 2017 CPR written by RPS Energy to cover the Rona Ridge assets excluding Lancaster, they have assessed the OWC evidence from the Halifax well and assign 2C Contingent Resources(1) of 1,235 MMboe to the Halifax licence (P2308).

     
Gross (100% basis) and Net Attributable Resources(1) 
      1C 2C 3C
P2308 Halifax  Total (MMboe) 268 1,235 3,379

(1) The Technical Committee of Hurricane’s Board is re-examining the full range of possible geological and reservoir models for the Lancaster field. The 2017 Competent Person’s Reports attributed independently certified reserves to the Lancaster EPS development and contingent resources associated with the overall West of Shetland portfolio. The outcome of the technical review may lead to a material downgrade of these contingent resource estimates. Any such revisions would be formally reflected in a new Competent Person’s Report, currently scheduled for release no later than the end of Q1 2021

 


Greater Warwick Area

The Greater Warwick Area comprises licences P2294 and P1368 South and is being appraised/developed through a joint venture between Hurricane energy (50%) and Spirit Energy (50%). The joint venture believes that the Greater Warwick Area (GWA) is a single hydrocarbon accumulation comprising the Lincoln discovery and the yet to be drilled Warwick prospect. The joint venture undertook a three well drilling program on the GWA during 2019 and is currently evaluating the results.

P2294 – Warwick / Lincoln

Located in Blocks 204/30b and 205/26d (Licence P2294). Hurricane has a 50% interest in this licence following Spirit Energy's farm-in to 50% in September 2018.

Licences

P2294 is a licence block that covers part of the Greater Warwick Area including the Lincoln discovery. 

The depth of the oil column identified in the Lincoln well 205/26b-12 (drilled in 2016) means that Lincoln and Warwick could be a single continuous accumulation. The image below show the Lincoln and Warwick structures (collectively known as the Greater Warwick Area, or GWA), assuming the same contact across both.

Three wells were drilled and tested on the Greater Warwick Area with Spirit Energy in 2019, two of which were in P2294. The results are currently being anlaysed.

In their 2017 Competent Persons Report, RPS model Best Case Prospective Resources of 935 MMboe to Warwick (gross), with a 77% chance of discovery.

     
Gross (100% basis) Attributable Resources
GpoS (%)
      Low Base High  
 P2294 / P1368 (South) Warwick  Total (MMboe) 228 935 2,790 77%

P1368 South – Lincoln

Located in Block 205/26b, Hurricane has a 50% interest in this licence following Spirit Energy's farm-in to 50% in September 2018.

Licences

The Lincoln discovery sits on the southwest limb of the Rona Ridge. It is deeper than Lancaster and separated from it by the ridge-cutting Brynhild Fault Zone. Hurricane views Lancaster as a direect analogue for Lincoln. 

Hurricane drilled inclined well 205/26b-12 on Lincoln in 2016. The well penetrated over 800m of basement section and encountered a fracture network similar to that seen on Lancaster with comparable fracture orientation, frequency and porosity. An extensive oil column was demonstrated by this well and geochemistry from cuttings plus analysis of isotube data indicates Lincoln has been sourced from the same kitchen as Lancaster. This information combined with gas chromatography data results in Hurricane anticipating that Lincoln should have similar oil properties to Lancaster. The Brynhild Fault Zone that separates Lincoln and Lancaster is believed to be sealing, preventing the deeper oil seen on Lincoln from moving updip to the shallower Lancaster structure.

A horizontal well on Lincoln was drilled and tested, joint with Spirit Energy, as part of the 3-well 2019 GWA drilling campaign. The results are currently being analysed.

RPS Energy concur with Hurricane regarding the isolation of Lincoln from Lancaster in their 2017 Competent Persons Report (CPR) that covers the Rona Ridge assets excluding Lancaster. Whilst RPS concur that the GWA could have the same contact they have elected to take a conservative approach by evaluating them as separate structures, at least until a well is drilled at Warwick. Consequently the CPR assigns 2C Contingent Resources(1) of 604 MMboe to Lincoln (gross).

     
Gross (100% basis) Attributable Resources(1)
      1C 2C 3C
 P2294 / P1368 (South) Lincoln  Total (MMboe) 150 604 1,537

 

(1) The Technical Committee of Hurricane’s Board is re-examining the full range of possible geological and reservoir models for the Lancaster field. The 2017 Competent Person’s Reports attributed independently certified reserves to the Lancaster EPS development and contingent resources associated with the overall West of Shetland portfolio. The outcome of the technical review may lead to a material downgrade of these contingent resource estimates. Any such revisions would be formally reflected in a new Competent Person’s Report, currently scheduled for release no later than the end of Q1 2021


Other

P1368 North – Whirlwind

Located in Blocks 205/21a and 205/22a (Licence P1368 North). As part of the extension of licence P1368 granted in December 2019, the subarea covering Whirlwind will be relinquished.

Licences

Whirlwind is a large, low-relief structure approximately 10km north of Lancaster, and was the second basement prospect to be drilled by Hurricane, proving to be another large discovery. 

The 205/21a-5 well was drilled in 2010 and re-entered for testing in 2011, flowing a light oil/gas condensate from an openhole test conducted over a combined Lower Cretaceous limestone and underlying fractured basement interval.

The source of the hydrocarbon is the same as for Lancaster, though the precise composition of the fluid at reservoir conditions remains ambiguous. This well is currently suspended for future appraisal, with options including re-entry for testing or a possible sidetrack being considered.

The Whirlwind structure is approximately 2,000 metres deeper than Lancaster, representing a downthrown terrace from the Rona Ridge. As such, the reservoir properties are broadly consistent with Lancaster, and should a gas export route become readily available then Whirlwind represents an excellent incremental project to the development of the area.

In their 2017 CPR that covers the Rona Ridge assets excluding Lancaster, RPS Energy reconfirmed their earlier assessment of recoverable volumes on the Whirlwind Discovery. Depending on the fluid type (which may be a light oil or gas condensate fluid type due to current sampling uncertainty), RPS attribute 205 MMboe of 2C Contingent Resources in the oil case and 179 MMboe 2C Contingent Resources in the gas condensate case. 

     
Gross (100% basis) and Net Attributable Resources 
      1C 2C 3C
P1368 (North) Whirlwind*  Total (MMboe) 91-98 179-205 301-373

*Range is gas/condensate case - oil case.