(Alliance News) - Oil producer Hurricane Energy PLC on Wednesday raised its annual production guidance for 2021 to the upper end of previous forecasts, but warned of potential disruption next year.
The Surrey, England-based firm continues to expect production between 8,500 and 10,500 barrels of oil per day in 2021. However, it said production is now likely to be towards the upper end of that range.
"The company has benefited from higher than expected oil prices and excellent performance to date of the floating production storage and offloading," said Chief Executive Antony Maris.
"As a result of the combined efforts of the Hurricane and Bluewater teams, we anticipate being towards the upper end of our production guidance for 2021 and this is also reflected in our guidance for the next six months to March 31, 2022," Maris noted.
Production forecasts are centred on the Lancaster field - located west of Shetland - with the site's guidance for the period slightly lower than the average for the full year 2021 due to the expected gradual production decline from the reservoir over time.
As previously reported, Hurricane's sole remaining P6 well produced an average of 11,467 barrels of oil each day in August and 10,800 daily barrels by September 15.
The company said that, based on current trends, management expects well-head flowing pressure in the Lancaster reservoir to reach the bubble point by the end of the first quarter of 2022.
"Whilst this has been factored into the guidance for the period, there will remain a degree of uncertainty regarding the full impact of this, along with the risk that gas liberated from the reservoir could be produced which could result in production either being reduced or ceased altogether," the company added.
Shares in Hurricane plummeted 15% to 3.96 pence each in London following the announcement. The stock is up 58% so far in 2021.
By Will Paige; willpaige@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.