Excitement ahead for Hurricane as first revenues beckon

The Aoka Mizu FPSO, pictured before it arrived at the Dubai shipyard
The Aoka Mizu vessel will serve the Lancaster field and Greater Warwick Area. Picture from Bluewater

Hurricane Energy’s boss said the company was entering an “exciting time” as it gets ready for first revenues and further drilling next year.

The London-listed company is on course for first oil from the early production system (EPS) on its Lancaster field, west of Shetland, in the first half of next year.

The two production wells have been completed, while the turret mooring system, subsea umbilical, risers and flowlines have all been installed at the field.

The upgrade and life extension of the Aoka Mizu FPSO is in its final stages in Dubai.

Sea trials will start later this month, with sailaway to follow shortly thereafter.

Spending on Lancaster contributed to a widening of first-half, pre-tax losses to £57 million, from a deficit of £3.2m last year.

Hurricane has also agreed to farm out 50% of its Lincoln and Warwick licences to Spirit Energy.

The firms will work towards a final investment decision (FID) on the first phase of a full field development on the Greater Warwick Area by 2021.

Spirit will initially cover the cost of a £139 million campaign to drill three wells to further prove up the potential of an area which holds an estimated two billion barrels of oil.

The Transocean Leader semi-submersible rig has been booked for the three well programme, starting in the first quarter of 2019.

Hurricane chief executive Robert Trice said: “During the first half of 2018, Hurricane has been focused on the Lancaster EPS development.

“I am delighted to report that operations have progressed to plan and within budget, allowing us to reiterate our first oil guidance of H1 2019.”

He added: “The next steps on the Greater Lancaster Area (GLA) remain subject to data obtained from the EPS.

“However, we believe that we will be able to undertake a drilling campaign on the GLA in 2020/21, ahead of planning for further development.

“We are entering a very exciting time for the company and its shareholders. I look forward to first revenues and continued appraisal and development of our significant Rona Ridge resource base next year.”