Presentation

Hurricane Energy was founded in 2004 in the belief that UK fractured basement reservoirs represent a significant untapped resource. Through participation in a number of licensing rounds, Hurricane assembled a portfolio of licences on the Rona Ridge, in the West of Shetland region of the UK Continental Shelf. Thereafter, Hurricane has drilled 11 wells across its licences, including five on the Lancaster field.

The first phase of development of the Rona Ridge assets, the Lancaster early production system, was brought onstream in 2019. Initial production was promising, but further analysis identified unanticipated aspects including a previously unidentified water zone within the productive interval that the company continues to assess. Consequently, Hurricane believes there is a risk of a material downgrade to its estimated reserves and resources. Completion of a full technical review is expected in September 2020, at which point the company expects to be in a position to notify management estimates of reserves and resources for the Lancaster field. This will likely also result in changes to the development plan going forward.