The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
Dr T talks about monetisation - not sure what this means for the SP today however I surely think this significantly de-risks this stock and brings us closer to an "interference" event....
Hurricane Energy plc, the UK based oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, is pleased to report the results of testing of the 205/26b-14 well ("Lincoln Crestal").
Highlights
· Maximum stable flow rate of 9,800 stb/d on ESPs
· Lincoln confirmed to contain light, 43° API oil
· No formation water produced
· Well now planned to be suspended as a future producer
Testing of the Lincoln Crestal well recorded a maximum stable flowrate of 9,800 stock tank barrels of oil per day ("stb/d") with the use of electrical submersible pumps ("ESPs"). The well flowed at an average rate of 4,682 stb/d under natural conditions. No formation water was produced.
Lincoln Crestal is the second well in a three-well programme on the Greater Warwick Area ("GWA"). The well was spudded on 12 July 2019 and was drilled to a total depth of 1,780 m TVDSS. It included a 720 m horizontal section of fractured basement reservoir.
The well will now be suspended, subject to regulatory approval, with long term gauges installed to test interference with future GWA wells. It is then planned to be tied-back to the Aoka Mizu FPSO during 2020, subject to further technical evaluations, 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 Transocean Leader semi-submersible rig will now move to the location for the third well in the 2019 GWA drilling programme, 204/30b-A 'Warwick West'.
Dr Robert Trice, Chief Executive of Hurricane, commented:
"We are delighted with the results of the Lincoln Crestal well. We have confirmed the presence of light oil which can be produced at commercial rates. The Lincoln Crestal well is now planned to be tied back to the Aoka Mizu FPSO next year. This would make Lincoln the second producing basement field in the UK.
"Based on the result of the 2016 Lincoln well, RPS Energy assigned 2C contingent resources of 604 million barrels of oil equivalent to Lincoln. This successful result brings us closer to monetising this huge resource."
Contacts:
good call adouble - looks like we're heading for an update early next week
some mention of next offload over the next week - I guess then we should start seeing the ship heading towards AM?
....at $61.22, Us crude inventories down - combined with anticipation of what comes in the RNS hopefully sees HURR pushing up over the next 24 hours
46p is the new 45p - seem to be a wall of sells there which is dragging us back
1.2m barrels....
I thought he his offload numbers lined up with the RNS on 2/9 - ie 1.2 barrels?
agree his offload numbers have been quite precise
....from RedOctober on advfn
"Yes Stevie next offload around 16th and will be another 450k! Drill floor informed me that initial testing is very promising, unfortunately I have no data to to confirm. Bring on the dancing girls..
incredibly low this morning - which I think is a good thing - ie folks holding on pending news.
a poster made the comment that we get this fantastic news and the share price only moves 2p or 4%. if we had less shares in issue the share price would still move 4% and your investment value would still move 4% but the ABSOLUTE change would be higher. I am going to move on from this one now. cheers
no - if there are LESS shares in issue then they would move up and down MORE in absolute terms,........
the original question was why the number of shares is relevant and what impact this has on the absolute movement of the share (rather than in % terms). Less shares in issue would mean that they become more responsive to perceived changes in the company's worth
perfectly valid question imo. I am pretty ignorant when it comes to matters related to oil and find the knowledge on display on this BB is absolutely outstanding and I benefit greatly from it so as my "field" is finance appreciate helping folk if they ask a question (nothing toooo complicated please!)
....in other words if there only 190m shares in issue then a £19m uplift would "give" each share an extra 10p value. hope this makes sense
the market cap of the company is simply the no of shares in issue (c1.9bn) x market price of the share (c45p) = £855m. So clearly if "the market" re-rates the value of HURR by £19m then the £19m uplift in value is distributed across 1.9bn shares.
thanks adouble - your answer makes sense. I guess there's always a "margin or error" to these things but even to a layman it looked like a sizeable flare which can only bode well..
agree Biff - there will be a point at which people who are not invested in Hurr are kicking themselves they did not take the oppo.....hopefully soon.
it would indeed SIPP - for the benefit of a non-oil person is it really possible to infer the flow from the size of the flare? Some fairly bullish comments around this in the last 24 hours.