Hurricane gets approval for Lancaster field development plan addendum

The UK’s Oil and Gas Authority (OGA) has approved Hurricane Energy’s Lancaster field development plan addendum (FDPA).

Hurricane Energy said on Thursday that the FDPA approval, together with associated production, flare, and vent consents, enables production with the flowing bottom hole pressure up to 300 psi below the bubble point pressure of the fluid – 1,605 psi at 1,240 metres TVDSS.

The initial consent is for three months from 16 June 2021 to 15 September 2021. Production, flare, and vent consents will be issued on a three-monthly basis. Hurricane will regularly provide the OGA with data to demonstrate conformance with the consent conditions.

In line with the FDPA, the company will ensure that no incremental liberated gas is produced to the surface and commits to choking back or shutting in any well which may produce incremental gas liberated due to below bubble point production.

According to Hurricane, the approval of the Lancaster FDPA satisfies a key condition of the company’s proposed financial restructuring, as originally announced on 30 April 2021.

Antony Maris, CEO of Hurricane, said: “I would like to express my thanks to the OGA technical and management teams for the open-minded approach they brought to these discussions.

“This approval, whilst not having any immediate impact on the reservoir performance of the Lancaster field, will assist with longer-term reservoir management, enabling us to optimise the field’s performance.

“Approval now, while we still have some months before we reach bubble point, will allow both us and the OGA to establish baseline performance and to test the three-month approval process“.

It is worth reminding that, on Wednesday, Hurricane stated that it restarted the electric submersible pump in the Lancaster 205/21a-6 (P6) well after it had tripped on 8 June 2021.

Once stabilised, the company intends to target oil production from the P6 well at a rate of c.11,000 bopd, being a similar level to that achieved immediately prior to the trip on 8 June 2021. Thereafter, oil production from the P6 well is expected to continue declining, Hurricane said.

The company also stated in Wednesday’s announcement that it hired the Stena Don rig for the plug and abandonment of the Lincoln-14 well.