Bosses at Hurricane Energy said today that they were looking forward to an “exciting” 2019 as the company gears up for first oil from its flagship Lancaster field, west of Shetland.
They said Hurricane had transformed from an exploration and appraisal company to a “full-cycle exploration, development and, very shortly, production business”.
Hurricane managed to hook up the Aoka Mizu production vessel at the Lancaster site earlier this month and expects to start pumping oil during the first half of 2019.
The company is developing an early production system (EPS) to help it decide whether to move onto a full field development at Lancaster.
The EPS should pump out 17,000 barrels of oil equivalent per day. At the Brent crude price of $60 per barrel, that would give Hurricane more than £150 million per year.
Announcing the firm’s full-year results for 2018, which showed pre-tax losses of £46.5m, chief executive Robert Trice said the Lancaster revenues would allow Hurricane to go after further appraisal and development activities in its portfolio.
The company completed a farm-out deal last year involving the sale of 50% of its Greater Warwick Area to Spirit Energy, who will cover the cost of an initial three-well programme targeting up to 2 billion barrels.
Drilling on the first well, Warwick Deep, should start next month.
Other highlights from 2018 include the relocation of Hurricane’s Aberdeen operation to Consort House, where there is capacity for a headcount of around 70.
Mr Trice added: “With first oil from the Lancaster EPS and a three well drilling programme on the Greater Lancaster Area, we look forward to another exciting period for Hurricane in 2019 as we advance our strategy of de-risking and monetising the substantial resources in our Rona Ridge portfolio.”
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