Hurricane Energy has announced an operational update with a programme focused on maximising the Aoka Mizu FPSO’s oil throughput capacity. In the Greater Warwick Area (GWA), partners concluded that it will not be possible to tie back the Lincoln Crestal Well to the FPSO in 2020. However, they are seeking regulatory consent to delay the abandonment of the Lincoln Crestal Well to obtain interference data during well testing in 2020 from one or more sub-vertical wells that are planned to be drilled and tested, to determine the maximum vertical extent of the Lincoln field. In the Greater Lancaster Area (GLA), an accelerated work programme is planned with an additional production well in 2020, in addition to drilling one or more sub-vertical wells in 2021 to determine the maximum extent of the Lancaster field. If successful, and subject to regulatory consents, the well would be tied back to the FPSO in 2021, with provisional first oil in Q122.
Hurricane and Spirit are planning to drill and test one or more sub-vertical wells in 2020 to determine the maximum vertical depth of the Lincoln field and, in order to obtain interference data during well tests, are seeking regulatory consent to delay the abandonment of Lincoln Crestal Well. This is currently due by 22 June 2020. The GWA partners also concluded that it will not be possible to tie back the Lincoln Crestal Well to the Aoka Mizu FPSO in 2020, and therefore, if partners are unable to obtain approval to extend the abandonment deadline, the well will be plugged and abandoned in March 2020. In the GLA, an additional production well is being planned for in 2020 which, if successful, and subject to regulatory consents, would be tied back to the Aoka Mizu FPSO with provisional first oil in Q122. In our last note, Hurricane’s core NAV stood at 35.2p/share for Lancaster EPS at a plateau of 17kbopd. The GWA tie-back accounted for 4.1p/share of a RENAV of 109.9p/share. We will be reviewing our forecasts to account for the new work programme.