15th Jan 2014 10:55
LONDON (Alliance News) - Cairn Energy PLC Wednesday said that operator Wintershall Norge AS has informed it that it is about to complete drilling of two appraisal wells on the 418 production license in the Norwegian North Sea, and they will then be plugged and abandoned.
Cairn has a 20% interest in the license.
In a statement, the operator said the objective of the two wells was to examine the thickness, properties, fluid content and depth to the Upper Jurassic reservoir to define the extent of the discovery to the south of the area, and clarify whether the discovery has a gas cap.
Prior to the drilling, the resource estimate for the discovery was between 10 and 25 million standard cubic metres of recoverable oil. Preliminary calculations now place the size of the discovery between 10 and 23 million standard cubic metres of recoverable oil and condensate, and between 8 and 15 billion standard cubic metres of recoverable gas, it said.
Wintershall Norge said the 35/9-10 S well encountered a 13-metre gas column and an oil column of 49 metres in three thin sandstones in the upper "Intra Heather" with reservoir quality as expected. Pressure data showed that the area has a lower reservoir pressure and is not in direct communication with the western and northern part of the discovery.
Well 35/9-10 A encountered a 59-metre gas column in the upper "Intra Heather" sandstone with better than expected reservoir quality, it said. Pressure data indicated that the proven gas cap is in communication with the oil zone proven in 35/9-7 and in appraisal well 35/9-8 in the northern part of the discovery.
However, the lower "Intra Heather" sandstone is only four metres thick, contains oil and has poorer reservoir quality than expected," it added.
"The licensees will assess the discovery together with other nearby discoveries for possible development solutions," Wintershall Norge said in a statement, adding that the appraisal wells will be plugged and abandoned.
Cairn Energy shares were down 1% at 265.2 pence Wednesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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