Hurricane Energy gushes higher on Lancaster Field well results

AIM-listed oil and gas company Hurricane Energy gushed higher on Friday after it announced encouraging results for the first new well at the Lancaster Field in the North Sea.

Hurricane said a very significant hydrocarbon column of at least 620m is present within the basement, extending well below structuring closure and confirming the company’s reservoir model for the Lancaster field.

The company said the results mean the well likely hosts more contingent resources than the company’s previous estimate of 200m barrels.

Hurricane said testing of the basement reservoir yielded a maximum, natural flow rate of 6,000 barrels of oil per day and a maximum flow rate of 11,000 bopd. The oil was of good quality with no formation water produced.

Chief executive Dr Robert Trice said: “The combination of high flow rates, an extensive oil column and underlying aquifer materially de-risks Hurricane's plans for a future Lancaster field development and further underlines the potential of the fractured basement West of Shetland."

The next stage of operations involves drilling of the horizontal well. This is designed to provide a second future production well and additional information to help optimally plan the Lancaster field development.

At 1300 BST, Hurricane shares were up 50% to 37.52p.