DEO makes pitch for Perth in North Sea

Offshore staff

ABERDEEN, UK – UK independent DEO has entered into a conditional agreement with Nexen to acquire a 42.08% interest in the Perth assets for £10.5 million ($16.67 million). 

The Perth field is 185 km (115 mi) northeast of Aberdeen in a water depth of 127 m (450f t). It was discovery in 1983 by well 15/21a-7, which tested oil in the Claymore sands of the Upper Jurassic Kimmeridge clay formation.

Between 1992-97 operator (Amerada) Hess drilled three subsequent appraisal wells (15/21b-47, 15/21b-49, and 15/21b-56) and one side track (15/21b-47y). The wells were production tested at rates ranging from 1,000-6,000 b/d of oil, all with quantities of hydrogen sulfide (H2S), varying from 2,500-8,500 ppm, and carbon dioxide (CO2) of 25-42 mol% in the associated gas.

The Perth field development has since been divided into four main areas by an east/west fault to the north of the three appraisal wells, and a north/south fault zone between these wells and the discovery well. These areas are known as:

• Perth Core – the three appraisal wells and one side track
• Perth North – undrilled
• Perth Beta Terrace – discovery well 15/21a-7
• Perth Beta East – undrilled.

DEO says total 2C contingent resources of 20.6 MMboe have been identified for an initial Perth Core area development. Consultants AGR TRACS have assessed the chance of a commercial development of the Perth Core area at 60%, although this should change, according to DEO, if the intent among the partners (Dana Petroleum, Maersk Oil, and Atlantic Petroleum) to develop becomes apparent.

Two development options are being investigated: a subsea tieback to the Tartan platform and a standalone FPSO. A decision will be made shortly, following consultation with co-venturers, and submitted as part of the field development plan. DEO is hopeful of achieving first oil in January 2013.

As part of the 15/21b and 15/21a licence package, DEO will also acquire a 42.08% stake in the Dolphin, Sigma and Gamma Central discoveries, all of which, it says, have been well tested, with additional resource upside.

David Marshall, CEO, said: “We have a proven and experienced management team who have successfully developed and commercialized North Sea assets in recent times. By applying advanced subsea technology and first class drilling operations to stranded assets we aim to become the leading independent operator of high value subsea developments in the Central North Sea.”

The company plans to raise funds for the acquisition and subsequent field development via a conditional £16 million ($25.39 million) share placement.

10/08/2010

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