Hurricane Energy claims UK's 'largest' undeveloped offshore oil discovery

Hurricane Energy reported an oil discovery from exploratory drilling near to the Lancaster field, which the company believes is part of the largest undeveloped discovery on the UK continental shelf.

Results of drilling from the 205/23-3A 'Halifax' well indicated a very significant hydrocarbon column of at least 1,156 metres is present within the basement extending well below local structural closure.

Hurricane said the basement reservoir below the final casing point was pervasively fractured and had a porosity that was consistent with the Lancaster field.

The company said initial data analysis indicated Halifax is linked to the Lancaster field forming a single large hydrocarbon accumulation.

"This is a highly significant moment for Hurricane and I am delighted that the Halifax well results support the company's view that its substantial Lancaster discovery has been extended to include the Halifax licence," said chief executive Robert Trice.

"We believe that the GLA is a single hydrocarbon accumulation, making it the largest undeveloped discovery on the UK Continental Shelf."

The end of the Halifax well marks the completion of the 265 days during which Hurricane has had the Transocean Spitsbergen rig on hire and the well has been suspended as company ponders whether to undertake further testing or deepen the well to establish a definitive oil water contact.

Trice will deliver the Lancaster competent person's report "imminently" and final investment decision "remains on track" for the half year.

"We will process the data from the Lincoln and Halifax wells and expect to release updated CPRs towards the end of 2017. These are exciting times for Hurricane," he concluded.