Hurricane Energy Share Discussion Threads

[hiddendepths] 25/4/2018 17:14

Oh, all right.

Many of the early North Sea fields were named after hookers in the towns where the riggers played in their time off. There were dozens of girls' names used, all allegedly derived that way. It was a bit of a tradition, albeit rather ignored by the likes of BP. When Clair was discovered, the BP Chairman of that time (I believe it was Sir Eric Drake) had just had his first grand-daughter. He strongly suggested that the field be named after her because so many of the other fields had girls' names. No-one dared tell him why and I believe he went to his grave in blissful ignorance.....

[madmuppet] 25/4/2018 17:05

hiddendepths
25 Apr '18 - 16:34 - 29079 of 29081

Go on then....!

[thanksamillion] 25/4/2018 16:48

Dilbert and Mulligan?

[zztop] 25/4/2018 16:38

Gilbert o Sullivan?

[hiddendepths] 25/4/2018 16:34

True enough, gs, I was being figurative rather than literal! I only meant that the Lancaster/Halifax field is going to take dozens of wells and many years to get a real handle on. It rather reminds me of the early days of the Forties field when I was in BP. It's only 200Mb said the Exploration Department, that's all that's proven at this stage. We planners said it was ridiculous to plan on that when the potential was so much higher and the development would be all wrong, but would they budge? No, they would not! Robert Trice has more imagination, I'm glad to say.

I've always been slightly amused by the nearby Clair field, which BP still don't seem to have got a grip on after many years. There's an amusing story about why the Clair field was so named, but I doubt anyone wants to hear it!

[laserdisc] 25/4/2018 16:26

The 2 Well Coordinates
Lancaster 205/21a-6 60°12.000'N 03°51.757'W
Lancaster 205/21a-7Z 60°11.995'N 03°51.731'W

[kirtonender9] 25/4/2018 16:16

GaryOnce again. Yr interpretation of chart patterns (& charting in general) leaves a lot to be desired.I do not see a double bottom chart pattern.The shares are getting overbought and are close to the 38.2% Fibonacci Retracement level (taken from the high hit in May 2017 & the low hit in Nov 2017). There is also resistance at this level.The shares are in an uptrend & shouldn't be surprised if they fall back to the uptrend if the they fail to make headway around current levels.But you will have to explain how you arrive at your double bottom.

[greyingsurfer] 25/4/2018 15:02

Well, it's not a single well, HD! There will be 2 wells tied into the FPSO initially, and without doubt more could be over time - both existing and new wells - if of course HUR are still operating the field and it's not been snapped up by one of the big boys who want to move fast towards an FFD. But whatever they do they can only test/produce from a small part of the total GLA/GWA from the planned EPS.Peter

[hiddendepths] 25/4/2018 14:32

They reckon a two day close above a significant level confirms it's broken through.

We've certainly cleared out some of the sellers waiting for 40p.

I agree with gs that there is no way the whole field could possibly be tested by a single well. It's probably several billion barrels recoverable...... The company is clearly aware that gas could be an issue and is already preparing contingency plans for it not to interfere too much if production is gassier than expected.

[telbap] 25/4/2018 14:26

Tim to top up and open a SB.

[bones] 25/4/2018 14:16

Just need volume way above current level to give a breakthrough of 40p some authentication.

[mirabeau] 25/4/2018 14:16

Yep, she's looking primed

[greyingsurfer] 25/4/2018 10:48

I think I did follow your point.

It's always been clear that the EPS cannot possibly "fully test" the field - which stretches far beyond the boundaries of what the EPS wells will test. It is however designed to fully test the reservoir in the limited area chosen. If management's assumptions about gas production are correct then I can see no reason for it not to do so, within the flaring and other equipment, limits.

The most robust well testing analysis such as traditional decline curve analysis requires “boundary dominated flow” to be achieved.

All this is really saying is that full testing requires flow limited by the characteristics of the reservoir being tested, and not the equipment. The EPS has apparently been designed to do exactly that. Yes, of course there may be a problem if gas production greatly exceed expectations, but at present I see no reason to assume that is likely.

Peter

[bloodhound] 25/4/2018 10:46

Longshanks - You keep asking the question when the answer is there right in front of you:

“However, based on details recently released by the company we believe that Hurricane is formulating a creative testing strategy that should circumvent many of the constraints imposed by the flaring restriction.”

You might want to have a look at this document from Oilandgasuk (an interesting read), which states:

"Installations brought on-stream in the last ten years in new regions such as the est of Shetland (WoS) have much lower levels of flaring."

hxxps://oilandgasuk.co.uk/wp-content/uploads/2016/11/Environment-Report-2016-Oil-Gas-UK.pdf

BH

[stepone68] 25/4/2018 10:39

Not sure why the rush. I don't imagine this will be fully valued by the market until the EPS has been up and running for 12 months (if then). So I'm more than happy for it to stay below 40p until then, otherwise I'll be tempted to sell some.

[longshanks] 25/4/2018 10:20

Yup - you are right - got my facts muddled up. 17k bopd rising to 30k limit.The point remains though that the WHI analyst does question the ability of the EPS to fully test the field.To help here is the full text of his comment.hTTps://www.google.co.uk/amp/www.proactiveinvestors.co.uk/companies/amp/news/194850"We have been asking for some time whether the data from the EPS will provide incrementally critical information that will materially favour a successful farmout," the analyst said."For perspective, in our opinion, Hurricane's assets already benefit from an extraordinary amount of data, inclusive of highly successful drill stem testing."He elaborated: "The crux of the issue is that the flaring restrictions will limit the capacity of the EPS to test the actual productive boundaries of the reservoir. The most robust well testing analysis such as traditional decline curve analysis requires "boundary dominated flow" to be achieved."In the absence of actually achieving that the gas flaring restrictions may create a constraint akin to testing the strength of a champion muscle builder (which the Lancaster field is, in our opinion) with 5 kg. barbells."This could create a risk of an ambiguous or frustrating test results."However, based on details recently released by the company we believe that Hurricane is formulating a creative testing strategy that should circumvent many of the constraints imposed by the flaring restriction."

[extrader] 25/4/2018 09:58

Oops
FOOD = FPSO...
ATB

PS 're full field potential, we ' d need to drill other outstep wells and are constrained to about 10 Km from FPSO by wax and other considerations

[extrader] 25/4/2018 09:57

Hi longshanks
The FOOD max capacity is 30k barrels per day, so we can't test higher production than that. Nor would we want to, AIUI, for geological reasons.

ATB

[longshanks] 25/4/2018 09:38

Thanks, although I am not sure you really followed my point.The WHI note was after an analyst briefing and refers to the suggestion that they may want/need to have sustained production rates much higher than 30k bopd on the EPS to test the field properly.Handling the extra gas in that case could become a problem.

[greyingsurfer] 25/4/2018 08:58

Has anyone any thoughts on the WH Ireland observation:.....

HUR have said they do not expect a high level of gas. Unless the gas levels are significantly higher than expected the allowed level of flaring will be sufficient to fully carry out the intended EPS studies.

Where there will be a real issue is with the FFDP, where far more gas will be produced and a solution will need to be found. That could include a joint pipeline. However, those are issues that are almost certainly for the future, and for whoever is operator when the FFDP is drawn up. Gas handling will only be one of a number of very expensive issues to address!

Peter

[francis55] 25/4/2018 08:32

Nothing to exciting in that report and inwards to foil if we get that far b4 we are taken over.

[longshanks] 25/4/2018 07:59

Has anyone any thoughts on the WH Ireland observation:"In the absence of actually achieving that the gas flaring restrictions may create a constraint akin to testing the strength of a champion muscle builder (which the Lancaster field is, in our opinion) with 5 kg. barbells."If the EPS can't fully test operational limits such that the Lancaster field can't be properly assessed - whilst there will be very decent cash flow, there is a risk it will frustrate full field development plans and/or any farm-in activity.Gas injection seems to be one way the company can overcome the flare constraint: if so then is there a well nearby that they can use, or would they need to drill a new one?

[gary38] 25/4/2018 07:35

The AGM will be held at 11.00 a.m. on Wednesday, 6 June 2018 at The Science Suite, Royal Society of Chemistry, Burlington House, Piccadilly, London, W1J 0BA. Printed copies of the Annual Report and Notice of AGM will be posted to Shareholders on 30 April 2018.

[gary38] 25/4/2018 07:33

Hurricane Energy PLC Availability of Annual Report & Notice of AGM