Hurricane Energy has raised £74.4 million in a combined share placing and open offer – which will be used to finance FEED costs for its Lancaster well and to explore two nearby new fields west of Shetland.
The Lancaster field potentially contains more recoverable resources than first expected and Hurricane Energy – taking advantage of what it calls ‘bottom of the cycle’ drilling rig opportunities – will now also drill new exploration wells on Lincoln and Warwick fields in the Rona Ridge prospect.
Lincoln and Warwick are adjacent to Lancaster and if – similar in size and content – could deliver up to 500 million barrels of oil.
Dr Robert Trice, Chief Executive of Hurricane Energy – who received 14m shares in the placing – commented: “Hurricane has had an exceptionally busy operational period of activity with outstanding results from the Pilot and Horizontal Sidetrack wells.
“Building on those results, we are delighted that the share placing and offer now allows us to capitalise on the operational momentum and proceed imminently with a campaign to further improve our understanding of the Greater Lancaster Area, potentially add considerable near-field resources and secure the development timetable for the Lancaster Early Production System.
“We also delighted that the proceeds from the fundraising enable us to benefit from valuable operational continuity through the continued use of Transocean’s Spitsbergen Rig and experienced crew at a beneficial point in the oilfield services cycle.
“Together with the recently announced appointment of Technip and FMC Technologies as our exclusive subsea solutions provider, our work on Lancaster and its wider potential is achieving genuine momentum which we believe will deliver significant value to shareholders and a sizeable resource for the UK.”
Meanwhile, OGA chief executive Dr. Andy Samuel and senior colleagues will give an update on N. Sea prospects and ‘MER in practice’ at an industry seminar next week in Aberdeen.
See also: OGA publishes new N. Sea ‘treasure map’ to 3bn barrels of oil in 350 un-tapped reservoirs