Hurricane Energy claim to have data that backs up the company’s view that the Lancaster field and Halifax prospect is one single large hydrocarbon accumulation.
The firm’s chief executive officer (CEO) said initial findings back up the idea that the two prospects are connected – forming one of the “largest undeveloped discovery on the UK Continental Shelf”.
Dr Robert Trice, CEO, said: “This is a highly significant moment for Hurricane and I am delighted that the Halifax Well results support the Company’s view that its substantial Lancaster discovery has been extended to include the Halifax licence. We believe that the Greater Lancaster area is a single hydrocarbon accumulation, making it the largest undeveloped discovery on the UK Continental Shelf.
“The discovery of a 1km hydrocarbon column at Halifax validates the efforts the company undertook to acquire the licence and drill, test and log the Halifax Well through the winter months.
“Given the positive well results, the Halifax Well has been suspended to provide the Company the option to return to undertake further testing as well as provide the option to deepen the well and thereby establish a definitive oil water contact.
“These are exciting times for Hurricane.”
The principal purpose of the Halifax Well was to support Hurricane’s view that the Lancaster Field and the Halifax prospect are one large connected structure.
Initial well results now support that opinion, the firm said in a statement.
The Halifax Well has successfully identified an “extensive” oil column, significantly below local structural closure.
The reservoir interval is pervasively fractured with porosities similar to those at Lancaster. The company believes that the deeper oil down to (“ODT”) at 1,846m true vertical depth subsea (“TVDSS”) identified in the Halifax Well, compared with an oil water contact (“OWC”) at Lancaster at 1,678m TVDSS, is most likely caused by a tilted OWC.
The Halifax Well was drilled and cased to 1,179m TVDSS in accordance with Hurricane’s drilling programme which was designed to isolate a potential gas cap and oil bearing column to a depth of 100m true vertical thickness (“TVT”) below structural closure.
It was subsequently drilled to 1,801m TVDSS and a Drill Stem Test (“DST”) was undertaken. However, constrained by budget, available time and the safety requirement of drilling overbalance, the well was unable to clean up and recovered only traces of formation oil to surface.
The well was finally TD’ed at 2,004m TVDSS, with no confirmed OWC encountered.
Following discussions with the Oil & Gas Authority, the Halifax Well has been suspended to allow for potential future operations to either deepen and/or undertake further testing of the well, the programme for which will be determined following analysis of the well results.
Preliminary third party analysis from the Halifax Well indicates:
· a very significant hydrocarbon column of at least 1,156 metres is present within the basement extending well below local structural closure (which is at 1,040 metres TVDSS);
· that the basement reservoir below the final casing point (1,179m TVDSS) is pervasively fractured (based on initial analysis of borehole image logs processing); and
· that porosity is consistent with that at Lancaster (based on initial petrophysical analysis.
The Spitsbergen rig has demobilised and is no longer on hire to Hurricane.
Dr Trice added: “I would personally like to thank Transocean whose pragmatic approach to commercial and contractual negotiations have been a breath of fresh air in today’s tough industry environment, and have facilitated Hurricane’s successful campaign during a time when UK exploration and appraisal drilling has been at a low.
“We have created a great partnership and I look forward to successfully continuing this relationship.
“The Lancaster CPR is due imminently and FID for the Lancaster EPS remains on track for the end of H1 2017. We will process the data from the Lincoln and Halifax wells and expect to release updated CPRs towards the end of 2017.”