EnCore resumes Esmond storage study

Encore Oil has taken full control of a gas storage project in the southern UK North Sea, following the withdrawal of previous operator Star Energy.

Offshore staff

LONDON -- Encore Oil has taken full control of a gas storage project in the southern UK North Sea, following the withdrawal of previous operator Star Energy.

Star, a subsidiary of Petronas, had drilled a test well on the decommissioned Esmond field with disappointing results. Star then decided not to proceed with front-end engineering and design, as the project no longer fulfilled its economic criteria.

EnCore, which was a partner in the well, is currently re-designing the development plan to accommodate partial re-pressurization of the lower reservoir. It also has contracted Helix RDS for an independent assessment of the project’s technical viability.

Later this summer, EnCore hopes to conduct a detailed reservoir simulation study of Esmond, the results of which may help establish the project’s commerciality.

The company has exploration plans elsewhere in the UK sector. Following the demise of Oilexco North Sea earlier this year, EnCore assumed operatorship of a license containing the Catcher prospect. It expects to drill a well on Catcher in 2010, along with an appraisal well on the Cladhan light oil discovery in the northern North Sea.

Following the results of the last appraisal well on the Cobra find, EnCore and its partners have designed various well/fracture programs to test the field’s commerciality. This could lead to further drilling in 2010.

08/13/2009

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