Hurricane Energy blows in with new west Shetland oil bonanza

 

Happy Hurricane Energy oil rig workers
Happy Hurricane Energy oil rig workers

New analysis of well samples from the Lancaster oil field west of Shetland are even more positive than first thought, developer Hurricane Energy confirmed yesterday.

The oil and gas company – which focuses on hydrocarbon resources in naturally-fractured basement reservoirs – has substantially completed post-well data analysis following the successful testing of the 1km horizontal appraisal well 205/21a-6 in Q2 2014 at the Lancaster oil discovery West of Shetland.

Dr Robert Trice, Chief Executive, Hurricane Energy, said:

“The Directors believe that the potential scale of the recoverable resource within these fractured basement reservoirs presents the UK oil and gas industry with a significant opportunity to access a material new strategic asset.

“I am delighted to report that our work on the well data gathered during the recent testing of Lancaster confirms our pre-drill geological model of the fractured basement, as well as significantly advancing our understanding of how the fracture network behaves.

“Importantly, the key metrics related to oil productivity are even better than expected providing us with further encouragement regarding the productive potential of Lancaster and our other basement assets.

“Such a level of productivity means that an early phase of field development and commercial production could be initiated with the addition of only one more horizontal well.

“As previously reported, we have a data room open for potential farm-inees, however the benefit of having two suspended proven producers and holding 100% of our acreage means that we have a broad range of options to progress the Lancaster Field development and our other assets.”

Scottish Energy Minister, Fergus Ewing welcomed the announcement from Hurricane Energy that their appraisal well on the Lancaster field, West of Shetland, could flow twice as much oil as previously expected.

 The company had initially expected it to flow 9,800 barrels a day, but their successful testing of the well demonstrates “a very good quality reservoir” which could flow 20,000 barrels of oil a day.

He said: “This is very welcome news from Hurricane Energy and a further indication of the huge oil wealth which lies West of Shetland.

West of Shetland production is expected to increase significantly in the coming years with projections showing that by 2018 production from this area is estimated to be approximately four times higher than 2014 levels.  

“This announcement backs up those projections highlighting that the wealth remaining under Scotland’s seas will continue to support our oil and gas industry and benefit the people of Scotland for many decades to come.”

The Lancaster well was optimally located to benefit from a highly connected fault/fracture network and an underlying 300m oil column (Hurricane’s – 2C estimate of field ODT). 

The results from third party analysis combine to demonstrate a very good quality reservoir which could deliver single well rates of 20,000 STB/d – significantly ahead of initial expectations of well productivity.

Well productivity index of 160/STB/d/psi demonstrates a very good quality reservoir pressure capable of delivering sustained commercial flow under production conditions.

Pixie Energy

Pixie logo Pixie Energy is an incubator and a facilitator of strategic research and project work, focusing on energy regulation, policy and markets at the local and national level. Find out more about Pixie Energy here.

Local Energy Matters: Scotland

Local Energy Matters: Scotland is a free-to-download brochure with a focus on energy tariffs in the two Scottish electricity distribution regions, as well news on local energy and low-carbon schemes.

Previous editions can be download here.

Scottish energy market overview

You can read an overview of the Scottish energy market here.

Scottish Government energy feed