HURRICANE Energy has started drilling work on the Halifax Well West of Shetland, after work on the Lancaster pilot well signalled that oil may be accumulated beyond the licence boundary.
The recently-secured Halifax licence is contiguous to Lancaster, lying north-east of the licence. And Surrey-based Hurricane said that if mobile oil can be demonstrated outside of local structural closure by the Halifax well, the Lancaster field could extend further north east along the Rona Ridge.
Chief executive Robert Trice said: “This has already been a hugely successful drilling campaign for Hurricane and the Halifax Well marks an exciting opportunity with which to close it.
“The prospect is also a logical conclusion to the drilling programme as, following the success of the Lancaster Pilot Well, we believe the oil column extends beyond the Lancaster block boundary and potentially up to the Halifax Prospect.
“We look forward to updating the market with initial well results towards the end of Q1 this year.”
The update comes amid hopes that a long-awaited upturn in the oil and gas industry could be on the cards with the recovery in Brent crude prices in the last quarter. Brent Crude was trading at $55.35 per barrel last night, after dipping to as low as $28 per barrel at the start of last year.
Hurricane has seen its share price climb steadily in recent months after drilling wells that underline the potential for making finds off Shetland, even at relatively low prices.
The company said in November it had also begun drilling work on the Lincoln well west of Shetland, declaring the prospect could hold up to 250 million barrels of oil. That came as Hurricane ceased drilling activity on the nearby Lancaster field, which it believes may contain as more than 200m barrels.
Hurricane said in October it would use the proceeds of a £70 million placing to fund production planning work on Lancaster.
Shares in Hurricane closed up 0.5p at 50.25p.
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