WEST PERTH, Australia – Oilex has entered an exclusivity agreement with UK-based Koru Energy to acquire up to 50% of three gas discoveries in the East Irish Sea offshore northwest England.
The Knox, Lowry, and Whitbeck (KLW) fields are shallow-water gas accumulations discovered by previous operators between 1992 and 2009, with drillstem testing confirming the volumes that Oilex and Koru would seek to bring into production.
They are also close to the subsea tieback pipeline that delivers gas to Spirit Energy’s nearby and recently refurbished North Morecambe gas production platform and onshore terminal.
These factors, allied to the shallow reservoirs, should reduce the complexity, risk, and cost of development, Oilex added.
During tests, Knox and Lowry flowed respectively 12.3 and 22 MMcf/d, with the reservoir quality similar to that of nearby analogous developed fields.
The main reservoir interval is the Lower Triassic Ormskirk sandstone formation. Spirit, which has expressed support for the development, also has certain back-in rights with respect to the KLW fields.
Koru has an exclusive right to acquire a 100% interest in the P2459 license containing blocks 113/28a (Knox) and 113/29a (Lowry), and P2444, block 110/3b (Whitbeck) from Reach Coal Seam Gas.
Pursuant to a joint agreement with Oilex, Koru would operate the KLW Joint Venture.