Oil and gas group Northern Petroleum (LON:NOP) is preparing to begin drilling the Markwells Wood -1 well in West Sussex to test a target with a mean potential that has been independently assessed at 35.0 million barrels of oil in place, with an upside potential of 61.4 million barrels with a 10% probability. Drilling equipment is currently being moved onto the site.

Markwells Wood lies between the Horndean and Singleton producing oil fields and is assessed to be an extension of the former. The final measured depth will be 6009 ft (1831m) at a true vertical depth of 4528 ft (1380m). Electric logs will be run to evaluate their well potential.

Northern said it was committed to being a good neighbour to the local community and conducting its operations to very high standards of safety, health and reduction of environmental impact. The licence is operated by Northern, which holds a 50% interest, with Magellan Petroleum holding 40% and Egdon Resources (LON:EDR) holding 10%.

Derek Musgrove, Northern’s managing director, said: “The commercial case for drilling Markwells Wood -1 is compelling when the price level of oil is above $80 per barrel for Brent crude oil. The independent consultants RPS Energy report in February 2010 assessed the Markwells Wood recoverable Proven plus Probable oil reserves at 5.7 million barrels and stated a value of £24.75m based on an $80 oil price for our 50% interest in Markwells Wood. Whilst we see greater potential in Italy and The Netherlands, it is important that we are pursuing and realising shareholder value for the oil discoveries at Markwells Wood, Baxters' Copse and Hedge End. If we are not offered the value of the UK assets through a sale, then we will realise the value by drilling and producing the assets.”

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