EnQuest to drill Cairngorm, Avalon in North Sea

KUFPEC UK and Spike Exploration UK have agreed to take 25% and 30% interests in the Cairngorm oil discovery in UK North Sea blocks 16/2b and 16/3d.

Offshore staff

LONDON – KUFPEC UK and Spike Exploration UK have agreed to take 25% and 30% interests in the Cairngorm oil discovery in UK North Sea blocks 16/2b and 16/3d.

Both have agreed to pay a promoted carry on an appraisal well to be drilled this fall, and to pay their equity share of back costs. EnQuest operates Cairngorm, a discovery in fractured granite with upside potential.

EnQuest has farmed into 50% interest of the Avalon prospect in UK block 21/6b, close to the Scolty and Crathes discoveries. An EnQuest operated exploration well is planned for next year, although Summit retains block operatorship.

Development planning is under way for Scolty/Crathes and a field development plan (FDP) is expected to be submitted in 2014.

Elsewhere in the UK sector, EnQuest is aiming for first production from theAlma/Galia development in 1Q 2014, depending on weather. The scope of the work on the FPSO has expanded, and the company is considering moving it to a yard closer to the field for commissioning.

EnQuest expects approval for its environmental statement for theKraken area heavy oil development later this year. An appraisal well earlier in 2013 confirmed a second accumulation of oil north of Kraken.

The FDP for the Kraken area development takes in both Kraken and Kraken North. EnQuest anticipates winning separate heavy oil allowances for each field from the UK government.

8/13/2013

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