Oates is a Palaeocene Forties prospect in Block 22/19c, approximately 20 kilometres west of Block 23/16f (the Columbus discovery, in which three successful wells have been drilled by Serica.). Premier Oil (LON:PMO) and Serica Energy (LON:SQZ) have 50% each. Oates is said to be "low risk and exhibit[ing] a well-defined amplitude response on the 3D seismic data, similar to that seen in the Columbus field" [1]
An exploration well, funded by Premier, is planned to be drilled to a depth of approximately 10,000 feet.
This was extracted from Premier's recent trading update:
The rig for the Oates prospect in the UK is expected on location by 20 July. The well is expected to take 30 days to reach target depth.
They have the low-mid-high range for reserves (ie recoverable, gross) as 25-65-107 mmboe. These were my notes on Oates from my Serica AGM writeup last month:
Premier are paying all dry hole costs. See this excited article on Premier's farm-in http://business.timesonline.co.uk/tol/business/markets/article6977108.ece The Huntington discovery is 25mmb and Serica are assuming that PMO came in because a find at Oates would allow a joint development.
Serica have Oates as 78mm boe and 60%/ likley to me oil rather than gas. Premier have a slightly lower target quoting 60-65. Mostly oil will be easy to develop, dry gas would too but is unlikley. Wet gas will be more of a challenge.
Disclosure of interest: The author holds shares in Serica Energy (LON:SQZ)
