Hurricane Energy PLC (LON:HUR) told investors that it has decided to shut one of the two wells feeding the Lancaster Early Production System amid flow instability and difficulties achieving targeted rates.
The UK offshore oiler had aimed to produce some 20,000 barrels of oil per day (bopd) from the pair of wells.
Increasing production resulted in instability in the flow regime on the 205/21a-7Z well because of interference between Lancaster’s two wells. It has decided to shut-in the 205/21a-7Z well “for the time being” and will for a period test maximum sustainable rates from just the 205/21a-6 well.
Presently, Lancaster is producing some 10,300 bopd from the 205/21a-6 well.
Production from the two wells had averaged 15,500 bopd in the year to date, and, Hurricane informed investors that it is now suspending guidance because it will now experience a period of production substantially below forward guidance of 18,000 bopd net.
“The results of the recent testing of the Lancaster EPS wells at elevated combined production rates are disappointing and the degree of interference encountered is unexpected,” Robert Trice, Hurricane chief executive said in a statement.
“Whilst the wells show high productivity individually, their proximity and associated interference behaviour requires further data acquisition before the company can be confident about optimum long-term well rates. This latest development reinforces that.
“This data acquisition process continues, and further updates will be provided once we have determined our target plateau production rate with the existing well configuration.”
Published at Fri, 22 May 2020 06:32:00 +0000-Hurricane Energy to miss production targets as instability forces well shutdown