Hurricane Energy PLC (LON:HUR) Warwick West Well Result & Lancaster Update

Dr Robert Trice, Chief Executive of Hurricane, commented: We are pleased to have made another discovery with the Warwick West well. The flow test results confirm the presence of light, mobile oil.

Hurricane Energy plc, the UK based oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, reports the results of testing of the 204/30b-4 (“Warwick West”) well and provides an update in relation to the Lancaster Early Production System (“Lancaster EPS”).

Highlights

· Warwick West

o Discovery of light, 43° API oil

o Maximum stable flow rate of 1,300 bopd on natural flow

o Third horizontal well to be drilled and tested in 2019 programme

o Programme currently within time and budget forecasts

· Lancaster EPS

o 2.5 million barrels of oil sold across six cargoes to date

o Production in line with guidance for Q4 2019 of ~11,000 bopd

Warwick West Result

The Warwick West well was spudded on 24 September 2019 and was drilled to a total depth of 1,879 m TVDSS. It intersected a 931 m horizontal section of fractured basement reservoir.

The well flowed for a total of 85 hours in a number of flowing periods at variable rates, using both an electric submersible pump (“ESP”) and under natural flow, while work continued to clean the well and evaluate reservoir performance. A stable rate using an ESP could not be reliably measured as the well was still in the process of cleaning up. After an extended pressure build-up period, a final flow period was conducted under controlled natural flow conditions which achieved a stable, sustainable rate of 1,300 bopd with evidence of the well having cleaned up further. During this flowing period, less than 0.5% water was produced.

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Initial analysis of oil samples indicates a light, 43° API oil. Further technical analysis of PVT fluid samples will now be carried out. This will include comparing the geochemical signature of oil from Warwick West with oils procured from Warwick Deep and Lincoln Crestal.

Warwick West is the third and final well of the 2019 programme on the Greater Warwick Area (“GWA”) which has been carried out using the Transocean Leader semi-submersible rig. In accordance with regulatory requirements, the rig will now plug and abandon the well before demobilising.

Hurricane and its joint venture partner on the GWA, Spirit Energy, are currently evaluating the results of the three wells drilled and tested in 2019. Further technical analysis will be required to determine the impact on the potential for the GWA to be a single accumulation, and on volumetrics.

Lancaster EPS Operations

On 14 November the sixth cargo of crude oil from the Lancaster EPS was lifted, taking total oil sales to 2.5 million barrels since First Oil in June 2019. Average production for the remainder of the year is expected to continue to be in-line with guidance for Q4 2019 of approximately 11,000 bopd, constrained by system availability and data gathering requirements.

As part of the data gathering exercise for the Lancaster EPS, the Company has been carrying out periods of production from the 205/21a-6 and 205/21a-7Z wells separately, to assess fluid dynamics and measure reservoir performance without the impact of interference from the other well. An interim update will be made when these flow periods have been completed, which is expected to be later in December 2019.

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Dr Robert Trice, Chief Executive of Hurricane, commented:

“We are pleased to have made another discovery with the Warwick West well. The flow test results confirm the presence of light, mobile oil.

“The impact that this well will have on how the Company views the GWA accumulation and its associated volumetrics will require further technical analysis. The GWA joint venture is now assessing the optimal appraisal strategy for the GWA, and Hurricane will provide an update in due course.

“Further progress is also being made in our understanding of the Lancaster reservoir. Uninterrupted vessel uptime combined with good well productivity have allowed us to carry out additional data gathering whilst remaining in line with guidance for Q4 2019. We will provide a further update later in December.

“In 2019 we have generated a wealth of new data from both the GWA and Lancaster and I look forward to presenting our findings in detail at our proposed Capital Markets Day in Q1 2020.”


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