Hurricane suspends Lancaster EPS well, lowers production guidance

Hurricane Energy PLC will shut in well 205/21a-7Z for an unspecified time and suspend its previous full year guidance after ongoing testing of two wells in the early production system on Lancaster field in the West of Shetland area offshore UK proved a combined production rate up to 20,000 bo/d (gross) was unsustainable.

The increasing rate resulted in unstable flow from 205/21a-7Z due to interference between the wells (OGJ Online, Apr. 20, 2020). Water production from 205/21a-7Z at the time of instability was in line with water production observed over previous weeks.

The company will continue maximum rate testing from 205/21a-6. The well is producing about 10,300 bo/d. Plans are to incrementally increase the rate to determine maximum sustainable level.

The shut in will result in a period of production well below the 18,000 bo/d net forward guidance. Full-year guidance of 17,000 bo/d (net) has been suspended. Year-to-date production has averaged 15,500 bo/d.