Dr T’s Video Message5 Jun 2019 12:47
CEO’s Video Script
Good morning. Please accept my apologies for not being with you in person, however, operations take precedence and I am currently aboard the Transocean Leader drilling rig for the business end of the Warwick Deep well.
I am very pleased to take a break from this important operation to talk about the outlook for Hurricane and the growth that we’re set to deliver over the coming months and years.
There’s been a lot of focus on the EPS and it was an extremely significant moment to be able to announce first oil. I was delighted to be able to say that Hurricane delivered the project on time and on budget.
With first oil achieved, Hurricane’s management team is now delivering a plan that targets a net reserve in excess of 100 million barrels during 1H 2020. This target is possible by using the existing Aoka Mizu with some minor modifications and an additional well tie-back from the GWA.
This 100 million barrel reserve is the first stage in our growth plan, however, it is only the first step as we are working to undertake two developments, one on the GLA and one on the GWA which combined will achieve a reserve case of 1 billion barrels, across our assets by 2022.
So how can we achieve this rate of growth? Well, there are three enablers that give us confidence in our fast track plan to increase reserves, production and accelerated cash flow.
The first enabler, the cornerstone of the growth, is of course the EPS and the data that it will generate. The EPS is now providing the key dynamic reservoir information that will help us better understand not just Lancaster but all our basement assets. In order to optimise our plans for further development, we will be evaluating the start-up data, along with the longer-term production data.
Secondly, there is the cash that the EPS will generate. Both Alistair and I are delighted not to have to come back to shareholders to fund the next stage in Hurricane’s story.
The Spirit deal is the third of the three enablers. It has allowed us to commit to a significant work programme, in parallel to Lancaster. At the time of the deal, we had one well penetration on the GWA, with no confirmed fluid type and no flow test results. By the end of this year, we expect to have three tested horizontal wells, each of them suspended as future producers, and by the end of next year, six wells in the same situation.
Assuming success, one of this year’s wells will be chosen to be tied back to the Aoka Mizu with the objective of providing long-term production. This tied-back well, combined with the five other wells, will form a network of downhole long-term pressure gauges that will provide an early understanding of how the reservoir is behaving. This is a unique and fast-track way of approaching a field development and the potential acceleration is extraordinary.
I’d like to thank the Spirit team for believing and working to our project timelines and for maintaining a fantastic working relationship to date, in
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