MIKE WATKINSON today admitted that Lancashire are facing an uphill struggle to reach the quarter finals of the Benson and Hedges Cup.

Yesterday's 16-run defeat by Durham leaves them with only one point from their first two matches and Watkinson said: "Realistically, we've got to win our last three games now to have a chance.

"And that's not going to be easy because the three teams we have still got to play are the ones you would say are the strongest."

Lancashire take on Notts at Old Trafford tomorrow, then Leicestershire on Sunday before going to Headingley to play Yorkshire the following day.

Leicester moved top of the group with four points by beating Yorkshire yesterday.

Lancashire seemed to be heading for victory when they reduced Durham to 67 for six after home skipper Jon Lewis had surprisingly decided to bat first on a showery day.

Peter Martin and Glen Chapple took a wicket each to reduce them to 5-2, John Wood bounced back from conceding 13 runs in his first over to take three for 33 against his former club, but the pick of the Lancashire attack was young Kyle Hogg who took one for 13 in his nine overs to continue his superb start to the season.

But Durham managed to reach 166 for seven from 44 overs thanks mainly to 37 from 33 balls from their chunky left-arm spinner Graeme Bridge, with Michael Gough ending unbeaten on 32 after hitting the last ball of the innings from Chapple for six.

After a third rain stoppage, Lancashire's target was increased to 171 even though they had two fewer overs than Durham thanks to the vagaries of the Duckworth-Lewis system.

But skipper Warren Hegg did not use that as an excuse as the batting crumbled to 154 all out.

The gamble of opening with Chapple backfired for the second time as he was bowled by Neil Killeen for a duck.

Killeen, who was Lancashire's destroyer when they lost to Durham at Liverpool last season, then trapped Stuart Law lbw and ended with three for 12 from eight overs.

David Byas looked in good touch in reaching 29 but fell to another impressive Durham seamer, Mark Davies, who earned one for 12 in a Hogg-like nine-over spell.

Tim Roberts did his best in his first innings of the season, hitting 33 including some classy off-side drives.

Lancashire's hopes were still flickering when Hegg joined Roberts to take the score to 124 for six, but there was to be no great escape and England all-rounder Paul Collingwood bowled Martin to complete Durham's first win of the season.