North Sea market buoyed by new discoveryNews // March 29, 2017
Hurricane Energy says it has made what it has described as "the largest undeveloped discovery" of oil in UK waters.
The company said one billion barrels of recoverable oil could be contained within the Greater Lancaster Area, 60 miles (97km) west of Shetland. It hopes to begin production in 2019.
The company, whcih focuses on hydrocarbon resources in naturally fractured basement reservoirs, said data suggests that Hallifax well is linked to the Lancaster field, forming a single large hydrocarbon accumulation.
The Halifax Well identified an extensive oil column, significantly below local structural closure. The reservoir interval encountered 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.
Preliminary third party analysis from the Halifax Well indicates:
· a very significant hydrocarbon column of at least 1,156m is present within the basement extending well below local structural closure (which is at 1,040m 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).
Dr Robert Trice, Hurricane's 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 GLA is a single hydrocarbon accumulation, making it the largest undeveloped discovery on the UK Continental Shelf.
"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 the first half of 2017. "We will process the data from the Lincoln and Halifax wells and expect to release updated CPRs towards the end of 2017," said Dr Trice. "These are exciting times for Hurricane."