Stratic curtails field development program

Prevailing economic conditions are hitting Stratic Energy’s development plans. The company says it may be forced to sell its production interests offshore Turkey and its 10% stake in Breagh, one of the largest new gas discoveries in the UK North Sea.

Offshore staff

CALGARY -- Prevailing economic conditions are hitting Stratic Energy’s development plans. The company says it may be forced to sell its production interests offshore Turkey and its 10% stake in Breagh, one of the largest new gas discoveries in the UK North Sea.

Like other junior independents, Stratic has had to struggle with soaring rig rates when oil prices were high, and bank finance constraints when prices fell back.
Despite these conditions, revenue from production is now rising, thanks to the West Don development coming on stream last month in the UK northern sector.
According to Stratic, the operator Petrofac is focusing on completing the second production well and a water injector to lift oil output to 25,000 b/d late this year. The net share to Stratic will be 4,300 b/d.
The company expects the Crawford field re-development plan to be submitted by operator Fairfield Energy towards year-end.
Also in the UK sector, Stratic has acquired its partner’s 50% share of the Cairngorm discovery, and has applied for a license extension to allow a new appraisal/development drilling campaign to go forward in better weather. When rig rates were at their peak, it points out, companies were being forced to accept winter slots in order to meet their license commitments on the UK shelf.
In the Turkish Black Sea, Stratic says a second phase of gas development is under way on its Akcakoca acreage. The scheme involves developing four discoveries via a new platform hub, which will be connected to existing offshore infrastructure through a short pipeline. First gas from this phase is due in late 2010.
05/29/2009
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