Analyst upgrades oil resources at Lancaster west of Shetland
Hurricane Energy says that reserves estimates continue to grow for the fractured basement Lancaster oil field west of Shetland.
This follows an updated Competent Person’s Report (CPR) by RPS Energy Consultant on Lancaster in license P.1368 Central.
Since the 2013 CPR, which attributed 2P reserves plus 2C resources of 200 MMbbl to the field, Hurricane has drilled and tested the205/21a-7 pilot well and two 1-km (0.6-mi) horizontal production wells.
The pilot well confirmed the presence of oil significantly below structural closure and successful drillstem tests on the other wells improved the company’s understanding of the reservoir.
RPS now estimates resources at 523 MMbbl of oil to Lancaster, based on a recovery factor of 22.5%. Hurricane expects to produce 37.3 MMbbl from a planned early production system with a six-year duration, during which it would also plan and initiates a full-field development.
Bluewater Energy Services, which is supplying theFPSOAoka Mizu for the EPS, has agreed to an extension option of up to 10 years. The company therefore sees no technical impediments to extension to 10 years, should it be deemed commercially attractive to do so bearing in mind other operations on Lancaster and Hurricane’s other assets.
First oil from the EPS could flow during the first half of 2019.