RE: GOR11 Apr 2018 12:47
Agree with WellWell wrt acquirers waiting for the data that can only be interpreted after first oil, however there is an investment case up to first oil and this could really be viewed as a two stage investment.
HUR will be targeting 10,000 bopd for each well as these rates were selected on the basis of the productivity index, and results of simulation modelling. The rates also exceed the minimum technically required by the development infrastructure to function effectively. For me, an over-riding factor is that these are the rates that are considered to be the optimum level for enhanced data collection for improved understanding of the reservoir.
The reservoir simulation work on the two EPS wells has not been shared in the public domain but formed production scenarios in the Lancaster field CPR. HUR have previously stated (EPS - ES) that it is assumed that the combined production rate for both wells will be 30,000 bopd for the six year life of the EPS development with gradual rate increases, whereas in the CPR the starting point for Low, medium, and High Case is 20,000 bopd (gross) and states:
Given that the vessel facilities are capable of rates up to 30,000 stb/d, if after 3 years the field is responding as, or better, than anticipated, Hurricane have suggested that production rates could be increased. RPS believes this is reasonable. Therefore, in the High case both wells produce at an initial combined gross rate of 20,000 bopd (18,000 bopd net @ 90% OE), with the gross production rate increasing to 30,000 stb/d (27,000 bopd net @ 90% OE) after 3 years.
The RT comment on making use of the full throughput capacity of 30,000 barrels of oil per day is extremely encouraging...and based on that I can't envisage a three year wait to reach that capacity...
