Fractured basement reservoir explorer Hurricane Energy says future development of its Lancaster oil discovery west of Shetland on the UK Continental Shelf is expected to be through a phased approach.
The firm, which announced successful results of a well test on Lancaster earlier this year, and which is seeking a farm-in partner to help develop the find, said development scenarios under review include the Phase 1 full field development, as outlined in the firm’s competent person’s report (CPR), or an early production system (EPS) using either a standalone vessel or existing infrastructure.
The firm also said it intends to commission a revised CPR, for publication in Q1 2015, following the successful well test.
The EPS is an incremental plan towards full field development, but benefits from the potential of accelerating oil production at a minimum cost, said Hurricane.
Funding options for either development solution are under review. Hurricane holds 100% in Lancaster, which has 400MMboe 2C contingent resources.
Post-well data analysis of 1km-long horizontal appraisal well 205/21a-6 well test in Q2 this year showed better than expected results, Hurricane said earlier this month.
The firm said the well was optimally located to benefit from a highly connected fault/fracture network and an underlying 300m oil column (Hurricane's - 2C estimate of field oil down to, or ODT).
"The results from third party analysis combine to demonstrate a very good quality reservoir which could deliver single well rates of 20,000 STB/d - significantly ahead of initial expectations of well productivity," said Hurricane.
Read more: Fractured basement reservoirs; a new play for the North Sea