Hurricane Energy PLC Operational Update (7992E)

TIDMHUR

RNS Number : 7992E

Hurricane Energy PLC

14 February 2018

14 February 2018

Hurricane Energy plc

("Hurricane" or the "Company")

Operational Update:

Successful Trial Fit Testing of Buoy and FPSO Turret

Hurricane Energy plc, the UK based oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, is pleased to provide an operational update on activities related to the Early Production System on the Lancaster Field ("Lancaster EPS").

A key project milestone has been achieved, with completion of buoy 'dry' trial fit testing operations by Bluewater Energy Services BV ("Bluewater") and Dubai Drydocks World, LLC ("Drydocks World").

Under the EPC contract with Bluewater, the Aoka Mizu FPSO vessel ("Aoka Mizu") is currently undergoing repair, upgrade and life extension works at the Drydocks World yard, in Dubai. This facility is also carrying out the fabrication of the buoy which will form part of the project's mooring system. A 'dry' trial fit testing operation was carried out between the buoy cone and the turret mooring system ("Turret") of the Aoka Mizu. The final step in the testing sequence involved separation of the Turret from the buoy cone, which occurred on 13 February 2018.

The successful completion of these operations provides a high level of confidence that the newly machined conical ring of the buoy will successfully engage with the machined receptacle of the existing Turret, during the offshore hook-up campaign for the Lancaster EPS. Thanks to careful dimensional control, and appropriate scheduling of the activities, the fit and proper functioning of the Turret locking mechanism has been demonstrated a week ahead of schedule.

As the cost and schedule consequences of an incorrect fit during offshore hook-up were a significant risk to the Lancaster EPS project, Hurricane, Bluewater and Drydocks World are delighted with the positive result. Importantly, this milestone has been achieved with an excellent safety performance.

The buoy cone will now be released for painting and to be connected to the base buoyancy structure, which has been fabricated separately from the cone. Completion and outfitting of the buoy is on schedule; it is expected to be ready to sail away from Dubai during the second quarter of 2018. Handover to the offshore installation contractor will occur on delivery at the port of Lerwick in the UK, in order to be installed during the third quarter of 2018.

The Turret of the Aoka Mizu, which was removed so that certain renovation and upgrade works could be carried out, will be reattached to the vessel as part of its continuing upgrade and life extension works. Vessel sail away from Dubai remains on schedule to take place by the end of the third quarter of 2018.

Dr Robert Trice, Chief Executive of Hurricane, commented:

"I am delighted that the Lancaster EPS development has passed another key milestone with the successful trial fit testing of the buoy in Dubai. I would like to thank Bluewater and Dubai Drydocks World for reaching this milestone ahead of schedule, whilst maintaining safe operations.

"I look forward to the next time that this equipment is connected which will be to secure the FPSO in place for the life of the Lancaster EPS. With other operations continuing as planned, we remain on schedule for target first oil in H1 2019."

Contacts:

 
                        Dr Robert Trice (Chief 
 Hurricane               Executive Officer)/Alistair 
  Energy                 Stobie (Chief Financial        [phone] 
  plc                    Officer)                        2820 
---------------------  ------------------------------  ------------------------- 
 Stifel                 Nominated Adviser and 
  Nicolaus               Corporate Broker 
  Europe                 Callum Stewart/Nicholas        [phone] 
  Limited                Rhodes/Ashton Clanfield         7600 
---------------------  ------------------------------  ------------------------- 
 Vigo Communications    Public Relations                [phone] 
                         Patrick d'Ancona/Ben            9704 
                         Simons                          [e-mail] 
---------------------  ------------------------------  ------------------------- 
 

About Hurricane

Hurricane was established to discover, appraise and develop hydrocarbon resources associated with naturally fractured basement reservoirs.

Hurricane's acreage is concentrated on the Rona Ridge, West of Shetland. The Lancaster field, the Company's most appraised asset, has combined 2P Reserves and 2C Contingent Resources of 523 million stock tank barrels of oil. The Company is currently proceeding towards the first phase of development of Lancaster, an Early Production System, with first oil targeted for 1H 2019.

During the 2016-2017 drilling campaign, the Company made two significant discoveries* at Halifax and Lincoln. Together, these discoveries* have 2C Contingent Resources of 1,839 million barrels of oil equivalent.

Hurricane's other assets include Warwick, which has best case Prospective Resources of 935 million stock tank barrels of oil, Whirlwind, which has 2C Contingent Resources of 205 million barrels of oil equivalent (under the Whirlwind oil case) and Strathmore, which has 2C Contingent Resources of 32 million stock tank barrels of oil. Together, this brings Hurricane's total combined 2P Reserves and 2C Contingent Resources to 2.6 billion barrels of oil equivalent.

*Discovery - This classification is consistent with SPE/AAPG/WPC and SPEE guidelines for Petroleum Resource Management - Determination of Discovery Status

Inside Information

The content of this announcement does not comprise price sensitive information.

This information is provided by RNS

The company news service from the London Stock Exchange

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February 14, 2018 02:00 ET (07:00 GMT)