Hurricane Energy announced this morning the flow test results from ‘Lincoln Crestal’ well, the second well of a three-well drilling campaign in the Greater Warwick Area (GWA), trying to access a 2C contingent resource of 604mmboe. The well tested at a maximum stable flow rate of 9,800bopd with the use of electrical submersible pumps (“ESPs”). The well flowed at an average rate of 4,682bopd under natural conditions and no formation water was produced.
The well will now be suspended, with the intention that it will be used for production via tie-back to Lancaster’s Aoka Mizu FPSO in 2020, subject to further work, regulatory consent and final investment decision by the joint venture. Production from the tie-back would generate reservoir data to be used in planning future phases of development.
The drilling rig will now move to the location for the third and last well of the 2019 drilling programme, ‘Warwick West’.
Edison’s 30 July 2019 risked valuation of Hurricane Energy currently stands at 102.8p/share, with GWA tie-back being valued at 3.5p/share and GWA FFD at 21.6p/share. Hurricane energy currently trades at 49.0p/share.”
Author: Carlos Gomes