Hurricane Energy makes major UK oil discovery

UK OIL and gas exploration firm Hurricane Energy has found what it says is the largest undeveloped hydrocarbon discovery on the UK Continental Shelf (UKCS) of the past decade.

Hurricane has finished drilling the Halifax Well, in waters around 100 km to the west of Shetland and found a column of hydrocarbons over 1 km deep. Due to structural similarities, the company believes the reservoir found is in fact a single accumulation with the neighbouring Lancaster field. Analysts Cenkos believe that in total the combined discoveries, known as the Greater Lancaster Area (GLA), could contain more than 1bn bbl of oil. An independent technical report, known as a competent person’s report or CPR, is currently being carried out to officially verify the size of the find.

Hurricane CEO Robert Trice said that “these are extremely exciting times” for the company, and praised the efforts of Transocean, whose Spitsbergen rig was hired by Hurricane to complete the exploratory drilling.

“The discovery of a 1 km hydrocarbon column at Halifax validates the efforts the company undertook to acquire the licence and drill, test and log the Halifax Well through the winter months,” he said.

He added that given the positive results at the Halifax Well, Hurricane has suspended drilling to allow for further testing if necessary.

Hurricane spokesman Ben Simons told The Chemical Engineer that Hurricane plans to drill its first oil at the site in the first half of 2019.

The news has been welcomed by industry body Oil & Gas UK.

“Hurricane Energy’s announcement – coming just days after the Oil and Gas Authority awarded new licences to companies to explore for oil and gas in frontier areas – demonstrates the significant remaining potential of the UKCS.  Signs of optimism, mainly led by exploration and production companies, are returning to the basin, which has worked hard to reduce its costs and improve efficiency,” said CEO Deirdre Michie.

She called for fresh investment to ensure that the country can capitalise on the potential of new oil and gas fields.