By the end of 2016, Hurricane E (LON:HUR) should have far greater certainty on the size and potential value of its key asset, Lancaster. If post-drill resource estimates remain in line with the pre-drill forecast at P50 200mmbbls, Hurricane remains well placed to attract partner and debt funding assuming an Edison long-term 70$/bbl Brent oil price. A resource base that only justifies an early production system (EPS) development is still likely to be economically viable, but could prove harder to finance in the current market.
Defining Lancaster resource range
Hurricane spudded the first well of a two-well programme on 6 July 2016. The wells consist of an inclined pilot hole, 205/21a-7, followed by a horizontal sidetrack, 205/21a-7z. A key objective is to locate the Lancaster oil water contact to provide better definition of the Lancaster resource range driving EPS and full-field development design. Submission of the field development plan and final investment decision on the EPS phase of the development is expected in H117.
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