Hannon-Westwood estimates that 224 exploration and appraisal wells could be drilled on the UK shelf between now and 2010.
Offshore staff
ABERDEEN, UK --Hannon-Westwood estimates that 224 exploration and appraisal wells could be drilled on the UK shelf between now and 2010.
Based on its survey of operators' intentions, the analysts expect the highest number of wells (97) in the UK central North Sea, followed by 68 in the southern gas basin, 35 in the northern North Sea, 16 West of Shetland, and eight in the eastern Irish Sea.
The planned wells are targeting around 9.6 bboe (un-risked), Hannon-Westwood adds, and at current market rates would require a total investment of around $4 billion. Just under half the planned wells have full funding in place, but 117 are still in need of third-party farm-in funds to go forward.
The analysts add that barring any sudden oil price downturn or unfavorable intervention by the UK government, the sector should be able to sustain at least 50-60 exploratory and appraisal well spuds annually over the next three to four years.
