EO. have announced that Bowstring (Cladhan) drilling has discovered the presence of light oil, with no oil-water contact.
EO. have a 16/6% interest in this field, which will now be suspended for future testing operations, with presumably a sale of EO.'s interest given the company's objective to create shareholder value and monetise assets at the appropriate time.
http://www.stockopedia.com/news/announcement/EO./081117eo.2931i.htm
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Some other detail here via Sterling - http://www.rigzone.com/news/article.asp?a_id=69534&rss=true
And Revus -
Revus Energy ASA announces that well 210/29a-4 has encountered an oil column in excess of 110ft (34m) with no observed oil-water contact,
in an Upper Jurassic sequence below 9,450ft (MDRT) containing 25ft (8m) of sandstones with log porosity exceeding 20% and showing high
oil saturations. Although the well will not be flow tested, an extensive pressure test measurement programme and the collection of
oil samples through a Modular Formation Tester (MDT) logging tool, suggest good reservoir mobility and therefore promising productive
potential. The well will be suspended providing the group the option to re-enter, side-track, flow test, at a later date, once the
data-set collected has been evaluated for potential resource size and commercial options.
Harold Vabo CEO of Revus commented: "The results of the Cladhan well are very pleasing in that a new stratigraphically controlled play has
been de-risked in this lightly explored part of the Northern North Sea. We look forward to following up the potential once the results
are incorporated in our evaluation. Suspending the well provides us with a series of cost -effective forward options."
Well 210/29a-4 was drilled to target a seismic amplitude-driven Upper Jurassic anomaly, down-dip and eastwards from the East Shetland
Platform. The well, in 535ft(163m) water depth using Transocean's 704 semi-submersible rig, was spudded on 15th October 2008 and reached a total measured depth of 9,735ft (2,967m) on 12th November 2008. Services for the well were provided by Advanced Drilling Technology International (ADTI).
The co-ventures in UKCS licence p1064 which includes block 210/29a are Sterling Resources (UK) LTD (Operator, 39.9%), Revus Energy (UK North Sea) Limited 33.5%, Encore Petroleum Limited (16.6%) and Dyas (UK Limited (10%)
What size estimates are out there for Cladhan/Bowstring East?
Post discovery, Hanson Westhouse have an un-risked 10p a share, risked at 6p.
KBC Peel Hunt had
This is a high risk/high reward prospect in the Viking Graben requiring a stratigraphic trap within the Upper Jurassic sandstones to work. Revus Energy, currently the North Sea’s most successful explorer and hitherto exclusively operating in Norway, has farmed in to this prospect. Based on current interests, EnCore will be paying approximately 18% of the well costs for its 26.6% interest. It intends to do further farm out deals before drilling, aiming to reduce its interest to below 20%.
The SEDCO 704 rig has been contracted to drill a well on this prospect, expected to spud in October 2008. We estimate gross prospective resources in the region of 120 mmbbl in this prospect but are assuming no more than a 15% probability of success. A discovery on this prospect of this scale could add up to 40p/share to EnCore’s NAV.
Since then EO, farmed out 10%, so now have 16.6%. This would bring the 40p down to 25p. This is the highest value I have.
Without an oil-water contact, I guess there is no way of pinning down an decent size estimate.
At the 2008 AGM, Alan Booth said Cladhan caused a lot of interest in the industry. You will have to excuse me if I am a little bit vague about it.
At the 2007 AGM, AB described Cladhan as a 100mb prospect.
I'm probably going to wait around for the next well on Cladhan - I think I read somewhere(?) that the next well will re-enter the discovery hole and deviate away from the vertical.
If there is a return of a decnt slug of cash to shareholders after the sale of Breagh, EnCore will be very highly geared to the success of the next well on Cladhan.
lsn
Perhaps the title of this thread needs updated ;-)
From DNX half yearly, looks like they are going for a stand alone FPSO for Rinnes & Melville. I'd be gob-smacked if Cladhan is not part of the 'Western Isles Development' at some point - unless it's too big in it's own right :-)
FPSO market survey, detailed subsurface work and scoping engineering work initiated on the Rinnes and Melville area discoveries, now to be renamed the 'Western Isles Development' ............
Following the recent success in the Rinnes area, Dana is accelerating subsurface studies and conceptual engineering work, with the aim of selecting a single development scheme by the end of 2009 and sanctioning the project by mid 2010. The development of the three recent Rinnes discoveries and the Melville discovery will be collectively termed the 'Western Isles Development'.
In reply to lowersharpnose (post #2)
Without an oil-water contact, I guess there is no way of pinning down an decent size estimate.
That's true, but not having an OWC is of course quite desirable. :^)
Buffy
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Thanks to wordbodger on iii.
Sterling resources interview with some words on Cladhan..
http://energy.pressandjournal.co.uk/Article.aspx/1547825?UserKey=
“We think we potentially have three Breaghs on the books. One is Cladham, though that still has a fair bit of risk attached to it, but also has a very exciting upside potential.
“We’ve just signed the rig, JW MacLean, for Cladham (Northern North Sea 210/29a). This will be managed by ADTI. Anticipated spud is May, at the earliest, though this hinges on other people’s schedules.
“We’re going with one well. Currently, we have just the discovery well. The initial plan was to go back and sidetrack that. But following discussions with partners, we think we’ll go with a new well.
“Cladham is a stratigraphic trap. We’ve tweaked the top of it but have not yet found oil-water contact. It is over-pressured, which can signify a fairly long hydrocarbon column … but this can be for other reasons, too.
“The next well is intended to prove commerciality. We expect to finalise the drilling location some time this month.”
Cladham is reputedly one of the largest remaining stratigraphic traps left in the North Sea and perhaps a multi-hundred-million-barrels Buzzard field analogue.
Read more: http://energy.pressandjournal.co.uk/Article.aspx/1547825?UserKey=#ixzz0cbueNUu0
Cladhan update - commencement of drilling about a week away.
http://www.investegate.co.uk/article.aspx?id=201007301100052427Q&fe=1
Reo
