More than 500,000 barrels of oil were lifted from Hurricane Energy’s (LON: HUR) Lancaster field at the end of last month.
In an operational update, the troubled North Sea firm said that, as of Monday, its flagship project was producing around 9,500 barrels of oil per day (bopd) from the P6 well alone, with an associated water cut of about 41%.
The 27th cargo of Lancaster oil, totalling approximately 530,000 barrels, was lifted on January 25.
It was priced at $81.4 a barrel, in line with the average of the first five days of January’s dated Brent quotes.
The next cargo is anticipated to be lifted in late March.
Lancaster fell below the ‘bubble point’ – when reservoir pressure declines to the point at which gas is liberated from oil – last month.
But despite falling below the threshold, production issues are yet to arise and Hurricane’s largest shareholder, Crystal Amber believes the field could produce up to 2025.
Hurricane has also provided a financial update, confirming that the oil and gas regulator has requested the company lodge additional funds as decommissioning security.
Discussions are ongoing as to the exact amount but it is expected to be up to £5.7 million.
It will increase the amount of funds in the trust from £28m to £33.7m.
Last month Hurricane received $3.2m million of cash rebates relating to research and development tax claims relating to the 2019 tax year.
An additional $1.3m claim in respect of the 2020 tax year is still under review by HMRC but is anticipated to be received later in Q1 2022.
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