At last Hurricane has managed to battle through the scottish weather to get Halifax well underway. No small feat, but with the Transocean Spitsbergen Hurricane investors are in safe hands. This really is the rolls royce of Rigs and should be able to cope with the majority of what the north sea can throw at it. That said, Investors should be aware that this is a dangerous period to drill any well and if weather deteriorates further, operations could be paused or delayed. The well is potentially a game changer for Hurricane. To date, discoveries and appraisals have been nothing short of astonishing. Billions of barrels discovered and a high chance that at least 25% to 30% can be recovered. There are several key objectives targeted by this well, which potentially makes it the most important and exciting of all wells drilled to date. First objective is to prove oil extends beyond the Lancaster Licence boundary. Second objective is to prove that the oil flows and determine the grade and pressures. And finally, discover the OWC. If they hit the jackpot on all 3, then the discoveries and licence areas collectively could or should be the largest ever discovery in the North Sea. And that’s not for minnows. That’s the type of resource that requires a super major… like BP.
It’s going to take a decent 20 to 30 days to get first objective sorted and possibly longer if weather continues to challenge as anticipated at this time of year. Possibly another 14 days thereafter to flow test and finally another 10 to 20 days to drill down to OWC although that could take a handful of days if OWC is just below TD. I would expect HUR to update the market as it progresses through the targets but it will be a highly confidential well due to its importance so do not expect too much detail especially as HUR will be discussing farm out options with prospective companies. All above timings are estimates and for guide use only.
Just when you thought it couldn’t get any better or more exciting…
16 January 2017
Hurricane Energy plc
Halifax 205/23-A – Well Spud
Hurricane Energy plc, the UK based oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, announces the spudding of well 205/23-A (the “Halifax Well”) on 15 January 2017.
The recently drilled Lancaster Pilot well (205/21a-7) encountered a minimum oil down to (ODT) of 1,620m TVDSS, indicating that the Lancaster oil accumulation is likely to extend beyond the Lancaster licence boundary. The recently awarded P2308 licence (“Halifax”) is contiguous to, and extends north east from, Hurricane’s existing Lancaster licence. The Company believes that if mobile oil can be demonstrated outside of local structural closure by the Halifax Well, then the Lancaster field could extend further north east along the Rona Ridge.
A previous well (205/23-2) drilled on the Halifax structure encountered oil and gas shows in sandstones immediately above the basement. In addition, Hurricane’s analysis of basement cuttings from the 205/23-2 well indicates the presence of oil thus mitigating the oil charge risk to Halifax. Seismic interpretation indicates the presence of a well-defined fault network within the fractured basement of the Halifax Prospect, analogous to that seen in Lancaster.
The Company plans to drill the Halifax Well below local structural closure and will then perform an open hole drill stem test (“DST”). In the event of a successful DST, it is envisaged that the well will be deepened to investigate the oil water contact.
Dr Robert Trice, Chief Executive of Hurricane, said:
“This has already been a hugely successful drilling campaign for Hurricane and the Halifax Well marks an exciting opportunity with which to close it. The prospect is also a logical conclusion to the drilling programme as, following the success of the Lancaster Pilot Well, we believe that the oil column extends beyond the Lancaster block boundary and potentially up to the Halifax Prospect.
We look forward to updating the market with initial well results towards the end of Q1 2017.”