It aims to drill a pilot and second horizontal sidetrack well this summer – after raising the ‘drilling chest’ via an investment by Kerogen and other institutional investors – allowing Hurricane to take advantage of the currently depressed rates for contractors.
The Transocean Spitsbergen rig will undertake Lancaster well operations later this this summer. This is a state-of-the-art semi-submersible drilling rig which Transocean believes can operate year round in the hostile West of Shetland to drill and test the Lancaster wells.
The drilling of horizontal sidetrack well will maintain options for an early first oil date targeted for H1 2019. A final investment decision for proceeding with the EPS phase of the Lancaster development is targeted for the first half of 2017, subject to the Lancaster 7 Wells being successfully drilled in 2016 and following completion of pre-FEED subsea and FPSO engineering studies.
Dr. Robert Trice, Chief Executive, said: “It is a reflection of the quality of the Lancaster asset that we have been able to attract funding to enable us to engage in near-term drilling activity during what is recognised to be a difficult time for the oil exploration and production industry.”
Meanwhile, Hurricane reduced its losses by 39% (to £5.5 million) last year compared to a loss of £9 million in 2014.