Hurricane gets more time to gather Lincoln data while seeking field determination

Due to the coronavirus pandemic, Hurricane Energy has received an extension of a deadline to plug and abandon the Lincoln Crestal well off the UK, which will allow it to gather more data and further insight into the reservoir behaviour.

Initial analysis of the three-well campaign on the Greater Warwick Area off the UK coast showed that the area’s productivity was materially less than Lancaster but still “commercial for development”, Hurricane Energy said in its operational update on Monday.

Hurricane stated that the three-well 2019 drilling campaign, completed in a joint venture with Spirit Energy, materially increased its understanding of this part of the Rona Ridge.

While the 205/26b-14 well, a.k.a. Lincoln Crestal, produced oil at 9,800 bopd using an electric submersible pump (ESP), the other two wells had significantly poorer outcomes.

According to the company, the results of the wells in the 2019 drilling programme are still undergoing analysis, but so far, Hurricane concluded that the GWA productivity was materially less than Lancaster with lower drilling mud losses, lower flow rates, and lower productivity indices.

The analysis also showed a difference in the fault zone characteristics in the GWA compared to Lancaster and that the GWA basement appeared to have less well-developed reservoir qualities than Lancaster.

Although the Lincoln Crestal well successfully produced at 9,800 bopd and exhibited a dual-porosity fracture response similar to Lancaster, its productivity index was lower.

This means that the GWA basement has less well-developed reservoir qualities compared to Lancaster, and in Hurricane’s opinion, a better understanding of the control on these properties will require further wells and data.

The company added that the planned licence commitment well was an important data point to this end.

Though different to Lancaster, the GWA joint venture is sufficiently encouraged by the 2016 and 2019 well results on Lincoln to consider the discovery commercial for development.

The JV is, therefore, seeking a field determination at Lincoln to progress towards field development incorporating a single well tie back to the Aoka Mizu of either the Lincoln Crestal well or an alternative shallower producer.

Based on existing consents, the Lincoln Crestal well is planned to be plugged and abandoned later this year. The suspension consent, which sets the deadline for this activity, has been extended from 22 June 2020 to 30 September 2020 due to the ongoing COVID-19 pandemic.

This extension also allows Hurricane to gather additional long-term pressure data, expected to provide further insight into the dynamic behaviour of the Lincoln reservoir.

The Transocean Paul B. Loyd Jr. semi-submersible rig, which is still under contract with Hurricane, is currently stationed in the Cromarty Firth and is expected to carry out this activity, but it is noteworthy that the JV is looking into alternative rig options.

In related news, Hurricane Energy and Spirit Energy agreed on a new cost allocation agreement last month relating to their 2018 Greater Warwick Area farm-in deal.

Earlier this month, Hurricane Energy confirmed “extraordinary productivity” of two wells and the reservoir at its Lancaster Early Production System.

These results encouraged Hurricane to maintain its forward production guidance at 18,000 bopd.

However, in the update on Monday, Hurricane updated its production guidance of 18,000 bopd for the balance of 2020 to average at approximately 17,000 bopd.