Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Hurricane Energy dashes hopes for new Lancaster well in 2021

© Hurricane EnergyHurricane Energy lancaster
Hurricane signage on the Aoka Mizu FPSO

Hurricane Energy today dashed hopes that it could boost production from its Lancaster field, west of Shetland, with a new well in 2021.

The London-listed firm said in December that it was considering drilling a sidetrack on one of the field’s two existing wells this year, followed by a water injection well in 2022.

But Hurricane said this morning that it won’t be possible to drill the sidetrack this summer without “unacceptable operational and cost risk”.

It said the proposed sidetrack was “more complex in nature” than previous wells on Lancaster as it would need an “intelligent completion” and because of the trajectory required.

Shares were down 14.92% to 3.15p as of 9:50am.

Hurricane said it would consider drilling both the sidetrack and water the injection well in 2022, or defer the injector until 2023.

The field has been producing from just one of its two wells in recent months, a decision made for “reservoir evaluation and management purposes”.

Hurricane also said talks with stakeholders, including an “ad hoc group of convertible noteholders”, about the firm’s strategy, financing and balance sheet recapitalisation were “ongoing”.

In addition, the business has put out feelers for a rig to plug and abandon the Lincoln Crestal well, which was drilled in 2019 as part of a three-well campaign on the Greater Warwick Area with partner Spirit Energy.

Announcing the discovery in September that year, Hurricane said it intended to tie back the well to the Aoka Mizu vessel on its nearby, wholly-owned Lancaster field.

However, Hurricane said in March 2020 that it had been “unable to achieve regulatory consent” with the Oil and Gas Authority to undertake a field development.

Its “working plan” was to plug and abandon the well by June 22 2020, in line with its original obligations.

But in May 2020 the regulator extended the deadline for plugging and abandoning Lincoln Crestal until June 30, 2021, in light of the Covid-19 pandemic.

Hurricane and Spirit were also given until June 30 2022 to start drilling a commitment well on the Lincoln field, a job initially scheduled for this year.

Hurricane said on the OGA’s project pathfinder page: “We have issued a market enquiry for the provision of a rig and associated services, while provision of engineering and well services are being managed by Petrofac (well operator).”

Recommended for you

More from Energy Voice

Latest Posts