Island upgrades Celtic Sea reserves

Island Oil & Gas has upgraded reserves estimates for the Old Head of Kinsale and Schull gas fields in the Celtic Sea.

Offshore staff

DUBLIN – Island Oil & Gas has upgraded reserves estimates for the Old Head of Kinsale and Schull gas fields in the Celtic Sea.

This follows acquisition of new seismic data last year, completion of a technical evaluation program, and analysis of three years of production data from the nearby Seven Heads gas field.

Island now estimates proven in-place gas at Old Head and Schull at 101 bcf, more than double the 48 bcf estimated in November 1997.

The company has contracted a consultant for a reservoir engineering study for Old Head to evaluate measures needed to convert the field to a gas storage facility at some point.

Pegasus Engineering will perform the study based on two scenarios:
- A tie-back to the Kinsale platform facilities off southern Ireland, newly acquired by Star Energy/Petronas
- Construction of new infrastructure to take gas from Old Head directly to the shore.

Initial parameters for the proposed gas storage center assume a winter peak daily rate of 100-150 MMcf/d, and storage capacity of 10-15 bcf based on Old Head’s proven reserves of 49 bcf and reservoir pressure of 1,781 psia.

Subject to the results of the study, Island will also investigate conversion of Schull to a storage role.

Island also has identified additional drilling opportunities in the Seven Heads field following a successful test of a 2006 appraisal well. Reservoir engineering work is under way in-house to determine production profiles and development costs.

06/05/2009

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