Hurricane Energy Plc (LON:HUR) shares advanced more than 5% on Monday after it ticked off another important box as it continues to advance the Lancaster oil field towards ‘first oil’.
The West of Shetland oil firm said in a statement on Monday that its field development plan for Lancaster’s early production system (EPS) has now been approved.
In late afternoon trading, Hurricane shares were up 5.3%, or 1.5p at 29.75p.
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The company is targeting ‘first oil’ in the first half of 2019, and following a recent US$530mln raise it is fully funded to the achieve the planned start-up.
“With funding and regulatory approvals in hand, we can now fully focus on delivering the project within the target timeline of first oil in 1H 2019,” said chief executive Robert Trice.
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The Lancaster EPS is not only an essential step in planning for the full field development of the company's Rona Ridge assets, but also represents a substantial development in its own right, with planned production of 17,000 barrels of oil per day.”
Tricee added that: “This is an important step in demonstrating the potential of basement West of Shetland and in the UKCS more generally.”
“We greatly appreciate the contributions provided to date by our key contractors and partners: Bluewater Energy Services, TechnipFMC, and Transocean.
“We look forward to providing further updates as we move forward with engineering, procurement, installation and commissioning (EPIC) activities."
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