(Alliance News) - Hurricane Energy PLC continued on Wednesday to wind down production expectations, despite forecasting an initial boost in output at its P6 well after successfully restarting the pump.
The Surrey, England-based oil and gas company has been drawing oil from a single well, P6, located in the Lancaster field in Scottish territorial waters. Extraction from the P6 well is assisted by an electric submersible pump, which tripped last Tuesday, leaving the well on "natural flow" while the company attempted to restart the pump.
With the pump working, Hurricane hopes to extract 11,000 barrels of oil each day from the P6 well. Before the pump tripped, the well produced an average of 11,370 barrels of oil per day through May. However, oil production is expected to continue to decline at the P6 well from that point on. Forecasts reported in April significantly downgraded the reserves and resources associated with the Lancaster field.
A further operational update will be announced in early July, in line with the reporting framework agreed in the company's recent financial restructuring, Hurricane said.
Meanwhile, Hurricane has hired the Stena Don, a semi-submersible rig, to perform its plug and abandon of the Lincoln-14 well in the Greater Warwick Area, west of Shetland. Hurricane operates the well on behalf of a joint venture split equally between Hurricane and Spirit Energy Resources Ltd. The venture is obliged to plug the well by October 31.
The company said the overall campaign will cost USD13 million to be split between Hurricane and Spirit, who will each pay around USD6.5 million to close the well. Hurricane estimates that the plug and abandonment will take between 20 and 25 days to complete.
Hurricane Energy shares were trading up 0.5% at 1.21 pence each in London on Wednesday morning.
By Scarlett Butler; scarlettbutler@alliancenews.com
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