Hurricane Energy Live Discussion

riverside_red 06 Jan 2020

Lancaster Oil Production ( EPS ) Where does the refining you refer to take place? There will always be entrained and subsequent free water in a cargo loaded from an FPSO. As long as it’s less than 0.5% all parties are generally happy. Quantified as BS&W, this is applied to the gross volume loaded figure to produce the net figure which is what the receivers will pay for, but they also get the entrained water and any free water which drops out after loading, which they then have to dispose of.

Ricfle 05 Jan 2020

Lancaster Oil Production ( EPS ) Have a look at Ralph post on twitter: twitter.com Ralphy (RalphEhoff) @TomWinnifrith @ShareProphets Pijoe' S previous article scaremongers. The AM has "limited total fluids and water handling capacity". Yes. 20k per day! Currently, 3k barrels of water per day from PERCHED water. You accept guidance so it's perched water. Suggest pijoe reads the ES. Cheap shots at #HUR 1:57 AM - 2 Jan 2020 You will see that the oil, gas and water are separated then refined independently, so there is no “net or gross”. HUR are not selling water and BP are not buying it, end of story.

Flossoffa 05 Jan 2020

ME again The ME has been relatively quiet for a long time but the assassination of Qassem Suleimani could have major longer term effects on the ME and the oil price. `“Middle East wars don’t happen by accident,” said Aaron David Miller, a senior fellow at the Carnegie Endowment for International Peace in Washington, DC. “They are preceded by actions, misperceptions until one side takes a new step that elevates things to a new level and that is essentially what the assassination of Soleimani means,” Miller told Al Jazeera. “The new place that we are in is that the shadow war is over,” he said. “This raised the stakes considerably beyond the pattern of tit-for-tat that has governed the Iran-Israel relationship and the Iran-US relationship for years.” Iran is almost bound to respond and the US has invested vast sums in its military which will be itching to demonstrate its abilities just like Mr Trump. It would not be quite a Falklands War for the US, but any response by Iran is likely to provoke a similar burst of U.S. patriFlotism

riverside_red 05 Jan 2020

Lancaster Oil Production ( EPS ) Net or gross?

Ricfle 04 Jan 2020

Lancaster Oil Production ( EPS ) Bobsson You can talk as much rubbish as you like, it is your prerogative. HUR in their RNS are talking about “OIL sales” and “OIL production”. “Anomalies in the numbers” cannot be explained by water.

bobsson 03 Jan 2020

Lancaster Oil Production ( EPS ) There you go again Ricfle, I did not “suggest” any such thing.

Ricfle 03 Jan 2020

Lancaster Oil Production ( EPS ) bobsson: is it also possible that the oil and water mix is pumped onto the tanker to be separated at the refinery? The latter may explain some anomalies in the numbers? No it does not. You are suggesting that both HUR and BP do not know the difference between water and oil. Think again.

Ricfle 03 Jan 2020

Share Price bobsson: The ramp up in production to 20,000 bpd is from the end of this month. Really? Here is a quote from the RNS dated the 13 Dec 2019: “FY2020 guidance o LancasterEPSaverageproductionrateguidancemaintained:20,000barrelsofoilper day (before operational downtime), to be reviewed as part of the current testing programme.” Where does your from the end of Jan come from?

bobsson 03 Jan 2020

Lancaster Oil Production ( EPS ) Ricfle, What happens to all the water that is being produced with the oil? One theory is it cleaned up on the FPSO and pumped into the sea. Another theory is the waste water is being offloaded to a tanker after separation on the FPSO, is it also possible that the oil and water mix is pumped onto the tanker to be separated at the refinery? The latter may explain some anomalies in the numbers?

bobsson 03 Jan 2020

Share Price Ricfle, The ramp up in production to 20,000 bpd is from the end of this month. HUR should be producing in excess of 20,000 bpd going into February. HUR are currently testing the performance of the two Lancaster wells and I would fully expect that part of the testing would involve switching the ESPs on to see how the wells and reservoirs perform.

Ricfle 03 Jan 2020

Share Price My understanding is the guidance has not changed for 2020, which is 20,000 barrels per day. Will they be running the ESP on the 6 well to achieve this in Jan, or have they forgotten to update guidance? As to the water cut, all we can say at present is that it has been increasing on the 7 well and there is no way of knowing when it will stop increasing. I can see no way of testing this with the 7 well shut in. Eventually, I agree, the 7 well will drain all the perched water, but how long this will take, days, weeks, months, years who can say.

Ricfle 03 Jan 2020

Lancaster Oil Production ( EPS ) On this point the RNS made little sense to me. From the last off load, 23 Dec to year end they will not produce 300,000 barrels or 37,500 barrels per day, so have they part off loaded the FPSO leaving some in the tanks? This does not seem credible in any way. I have been reading the RNS as 2.8m barrels of production in “H2 2019” and “2019 total oil” sales of 3.1m barrels. This would make sense as the first off load was in H1 2019 and was 300,000 barrels.

bobsson 02 Jan 2020

Lancaster Oil Production ( EPS ) Given the trading update stated 2019 oil sales of 2.8 million barrels and production of 3.1 mbls I would expect the next offload (8th) to be the weekend of the 10th/11th January of 450,000 + barrels.

bobsson 02 Jan 2020

Share Price Ricfle, HUR currently producing nearly 15000 bpd from well 6 with minimal water cut. I think this is a tremendous performance from a single well. This leads me to assume they will produce the additional 6000 bpd from 7z from end of January onwards. The water produced will be perched water so at 30% they can produce 9000 barrels (30% of which will be water). Seems perfectly reasonable to me to gradually flush the perched water, we should then gradually see the water cut tail off from 7z. As you say the CMD end of March will give us some answers, and as 7z will only produce from the end of this month, I would not expect any data from HUR until two months of production, so end of March is fine with me. There is no point in running 7z at the moment because the company want all the cashflow it can get given the change to the 2020 drilling programme and the need to 100% fund an additional Lancaster production well. Sentiment will quickly improve once the water cut subsides and the price of oil gradually rises in 2020. IMHO IMHO

Ricfle 02 Jan 2020

Share Price Another good post from DSPP on The Lemon Fool: [link] Outlining the water cut issue. It is clear why HUR had to release an RNS about this in Dec. No doubt we will have an uniformed poster telling us it is all “unsubstantiated speculation”, even the OGA figures. Unfortunately, we will learn no more on the water cut issue until the CMD as HUR are closing in the wet well until the end of Jan. This strike me as incorrect as they would learn more by letting the wet well run and seeing what happens to the percentage water cut.