Hurricane Energy progressing on financing discussions for Lancaster

All the pieces appear to be falling into place for Hurricane Energy with the funding for the early production system at its Lancaster well set to be the main development of 2017.

The owner of the largest portfolio of currently undeveloped discoveries on the UK's Continental shelf said it was progressing on a range of possible financing discussions, with a view to first oil at Lancaster in the first half of 2019.

Linked to the above, Hurricane chief Dr. Robert Trice highlighted how the May 2017 Competent Persons Report for Lancaster had increased its estimate of 2C resources at Lancaster and Whirlwind to 691.0m barrels of oil.

When it enters production, output from Lancaster was expected to run at roughly 19,000 barrels of oil per day.

Trice also highlighted how his firm had made the most of the period of low oil field services rates and the availability of the Transocean Spitsbergen rig to begin its 265-day drilling campaign in 2016.

"The continuous drilling operations were highly successful and resulted in two further basement discoveries, a very substantial uplift in resources, the complete production well stock required for the EPS and a wealth of reservoir information to allow us to progress with the first phase of development for Lancaster on schedule for first oil in H1 2019," he said.

Post year-end, the outfit discovered another fractured basement reservoir at its Halifax well, amid indications that it may in fact be a part of the same hydrocarbon accumulation as at Lancaster.

Hurricane finished the year with £82.2m of cash in the bank after conducting a £126.2m financing round.