Hurricane Exploration is close to completing its sidetrack operation on the Lancaster discovery well, Block 205/21a, West of Shetlands. The objective of the operation was to establish the reservoir properties of the Lancaster basement prospect and to demonstrate the potential for commercial hydrocarbon flow. The primary reservoir target comprised two seismic scale faults separated by a volume of fractured reservoir. Reservoir evaluation to date has included two phases of drill stem testing (DST) and production logging (PLT). A summary of the test results are as follows:

DST-1 evaluated over 400ft of open hole and targeted the shallower of the two seismic scale faults. The test produced 100% 38° API oil at a surface condition constrained, stabilised flow rate of 2,350 bopd on a fixed 48/64' choke. PLT data indicates that virtually the entire logged section contributed to flow and that specific fractures dominate production rates. There was no evidence of depletion throughout the test.

DST-2 evaluated a total of 600ft of open hole testing the combined contribution of the two seismic scale faults and the intervening interval of unfaulted reservoir. On a fixed 48/64' choke the test produced 92% 38° API oil at a surface condition constrained stabilised flow rate of 2,450 bopd and 8% water at a flow rate of 200 bwpd. Rig site chemical analysis indicates the water to be a mixture of drilling brine and formation water. PLT data confirms that virtually the entire logged section contributed to flow and that specific fractures dominate oil production rates. It is also evident that the water production was confined to a single fracture. There was no evidence of depletion throughout the test.

Reservoir fluid samples have been collected for further analysis and an extensive wireline logging suite is in the process of being completed. Current operations are expected to continue into early August and the well will be suspended for use in future operations.

Robert Trice, Chief Executive of Hurricane, commented from the drilling rig, 'I am delighted with the ongoing operation. We have confirmed that our strategy to drill with a balanced brine system and deploy sequential testing is highly effective. The test results are particularly enlightening as they confirm the basement reservoir is not only saturated with mobile oil, but is also productive outside of the target reservoir fault zones.

We have acquired a dynamic data set of the very highest quality, but it will be several months before we are in a position to evaluate how this information has impacted our understanding of the volumetrics, potential production rates, and other reservoir characteristics of the Lancaster prospect'.

Hurricane believes that this is the first well test to demonstrate the commercial potential of a granitic basement reservoir in the UKCS. Hurricane is indebted to their well test technical support team at Axis Well Technology for helping deliver this success, and to their primary testing service supplier, Schlumberger. The drilling of the well was a further technical success, delivered by Dolphin Drilling Ltd and the well management group of AGR Petroleum Services.

Hurricane has a 100% ownership of the Lancaster prospect.

Tags: Hurricane Exploration plc.