RE: RECOVERY toward 40 plus have started13 Dec 2019 11:29
Thanks jacks1313 onADVFN
Operational Update P1368 Licence Update
RNS 7491W
These are my takeaways from the rns:
1) The company will now focus solely on the GLA and GWA licences.
2) Drilling commitments for the next two years will be concentrated on Lancaster sub area and Lincoln sub area. Sub-vertical wells down to OWC will be drilled on each. These are OGA requirements as conditional to granting 5-year licence extensions. (Lincoln by year-end 2020, Lancaster by year-end 2021)
3) The planned GWA programme scheduled for 2020 appears to have been postponed and now being subjected to a planning review. Horizontals on GWA are off the menu. This also means that permits for any revised drilling will not be forthcoming in time to make use of the contracted rig in H1 2020.
4) Hurricane are hoping to use the slack time to drill a third horizontal producer on Lancaster in H1 2020
5) There is minimal perched water on well 6 and increased perched water on 7z. At the July CMD Dr Trice emphasised, using Bach Ho as his example, that perched water production is expected to increase in the early years of production and decline thereafter as the water pockets are progressively contacted and drained. He displayed a graph to illustrate this. (Proponents of coning may still not be satisfied with his explanation and perhaps it may take a year or two before they will accept that coning is not occurring. I'm not bothered too much what the punters think it is more relevant to the monetisation cause what the industry observers think.)
6) Reiteration that six to twelve months of steady state production still needed. On that basis it could be H2 2020 before reservoir model is confirmed. Industry observers will now be watching with intent.
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