WTI $62.06 -28c, Brent $66.05 -16c, Diff -$3.99 +12c, NG $2.65 -4c
In an operational update released this morning HUR has announced further important progress towards the development of Lancaster as two horizontal christmas trees and the FPSO subsea control system have been delivered by TechnipFMC. These are some of the key long lead items for the development and represent an important step to enable HUR to maintain the schedule for the Q2/3 well completion and installation programme.
CEO Robert Trice said that ‘this is a significant milestone in readiness for the 2018 well completion programme and that we remain on schedule for first oil in H1 2019’.
With further operational news from the company and other operations still very much on schedule I am confident that the Hurricane story is very much still up and running.
Far has announced the findings of the Independent Resources report compiled for them by RISC for the FAN discovery offshore Senegal. Key information has 2C contingent recoverable oil resources of 198 mmbbls with undrilled prospects having prospective resources of 673 mmbbls on a best estimate basis. The JV is progressing appraisal plans for the FAN South and SNE North oil discoveries with a further review due mid year. According to MD Cath Norman ‘There seems little doubt that there is huge potential to unlock more oil when these undrilled prospects are tested in the future’.
Although the Far share price has yet to respond I am yet further encouraged by this news and am sure that the addition of more hydrocarbons here will not only extend the size and life of the field but to improve yet further the long term economics of this ‘world class’ development. Shareholders should be very happy that Far has a strong cash position and as a result of the recent very impressive farm-out a very exciting well to drill in The Gambia towards the end of the year.
I recently did an interview with Jeremy Naylor at IGTV in which I spoke about last years bucket list and ran through a few of the new additions to the list, the link is below.