Blog Archives

Recap: Worldwide Field Development News (Jan 20 – Jan 26, 2012)

Inauguration-of-Noble-Globetrotter-I-at-Schiendam-the-Netherlands

This week the SubseaIQ team added 10 new projects and updated 31 projects. You can see all the updates made over any time period via the Project Update History search. The latest offshore field develoment news and activities are listed below for your convenience.

Europe – North Sea
Duart Field Shut-In
Jan 26, 2012 – Bridge Energy stated that the Duart field is currently shut-in with production expected to restart in mid-March. The satellite field is located on UK Block 14/20 in the North Sea about 116 miles (186 kilometers) northeast of Aberdeen, Scotland.
Det norske to Drill Geite Prospect 2Q 2012
Jan 26, 2012 – Det norske announced plans to commence exploratory drilling in licenses PL 497/497B, in the Norwegian sector of the North Sea. Geite, located in a water depth of 262 feet (80 meters), is considered a large 4-way fault dependent closure. The operator plans to drill the prospect in 2Q12.
Project Details: Geite
Valiant, Antrim to Develop Fionn Field
Jan 25, 2012 – Antrim Energy and Valiant Petroleum have signed an agreement to proceed with early installation of subsea facilities for the development of the Fionn field in the UK sector of the North Sea. Fionn, located in Block 211/22a, was formerly called Central Causeway fault block. In December 2011, the UK Department of Energy and Climate Change assigned separate field designations to the Fionn field and the Causeway field, the latter containing the two fault blocks previously referred to as the East Causeway and Far East Causeway fault blocks. A Field Development Plan for the Causeway field was approved by DECC, with first oil expected in mid-2012. Under the terms of the Fionn Agreement, various subsea facilities will be installed during the first half of 2012 in conjunction with the installation of facilities for the Causeway field as a pre-investment for the future tie-in of Fionn to minimize development costs. Valiant will finance Antrim’s share of these costs. For three months following first oil from Causeway, Antrim has the option either to either withdraw from the Fionn project, or confirm its participation by paying its 35.1 percent share of the pre-investment outlay. Operator Valiant Causeway will likely submit a development plan for Fionn to DECC during the current quarter. It is planned that Fionn production will be combined with Causeway production, transported for processing to the Cormorant North platform, and exported to the Sullom Voe terminal for sale. First oil from Fionn is anticipated in mid-2013.
Project Details: Causeway
Total Submits Hild PDO to Norwegian Authorities
Jan 25, 2012 – Total has submitted a Plan for Development and Operation to the Norwegian Petroleum Directorate for the Hild field in the Norwegian sector of the North Sea. The field has estimated recoverable reserves of 1 Bboe. The development calls for an integrated wellhead, living quarters and production facility with a life expectancy of 30 years. The facility will be designed for remote control from an onshore base in Stavanger via an undersea cable from Kollsnes. It will also receive power from land. Oil will be sent by pipeline to a contracted storage vessel for processing before loaded onto shuttle tankers. The ship, which is planned to receive power from the production facility, can store up to 620,000 barrels of oil. Production is slated to commence in 2016. Hild is located in a water depth of 328 to 394 feet (100 to 120 meters).
Project Details: Hild
Nautical Divests 25% Stake in Kraken to EnQuest
Jan 24, 2012 – Nautical Petroleum will divest a 25 percent stake in the Kraken discovery (Petroleum License P1077) to EnQuest. Subject to the approval of the joint venture partners and the Department of Energy and Climate Change (DECC), EnQuest will become the operator of blocks 9/2b & 9/2c. The deal will involve Nautical receiving a carry on in its future expenditure on the Kraken field of up to $240 million, consisting of $150 million firm carry and a contingent carry of up to $90 million. The value of the contingent carry will be calculated by reference to a determination of the gross 2P reserves in blocks 9/2b and 9/2c. The reserve determination will take place during the development drilling phase. In addition to the disposal of a 25 percent interest in Kraken, Nautical will also divest interests in exploration blocks in the Greater Kraken area. EnQuest will receive a 10 percent interest in the P1575 license (Blocks 9/6a and 9/7b) and a 15 percent interest in the P1573 and P1574 licenses (Blocks 3/22a and 3/26). Krakan spans Blocks 9/2b and 9/1a in the UK sector of the North Sea.
Project Details: Kraken
E.ON Comes Up Dry at PL 350
Jan 23, 2012 – E.ON Ruhrgas has completed the drilling of wildcat well 6507/6-4 S and is in the process of completing the drilling of wildcat well 6507/6-4 A. Both wells are dry. The objective of wells 6507/6-4 S and 6507/6-4 A was to prove petroleum in Upper Triassic and Permian reservoir rocks, respectively. Well 6507/6-4 S encountered Upper Triassic reservoir rocks with reservoir quality as expected, while well 6507/6-4 A did not encounter the expected reservoir rocks. Extensive data acquisition has taken place at both wells and sampling was carried out. This is the first time drilling has occurred in PL 350. The wells will now be permanently plugged and abandoned.
Staoil Gets Govt Nod for Skuld Fast-Track Development
Jan 20, 2012 – The Ministry of Petroleum and Energy has greenlighted the plan for development and operation of Skuld, a fast-track development tied-in to the Norne field in the Norwegian sector of the North Sea. The field will be developed by three subsea templates with six production wells and three water injectors connecting to the Norne FPSO through a 14-inch-diameter production flowline and umbilical. The field is scheduled to come online by late 2012. Recoverable reserves in Skuld are estimated at 90 MMboe, primarily oil.
Project Details: The Greater Norne Area
Asia – SouthEast
AWE Acquires Acreage in Natuna Sea
Jan 26, 2012 – AWE Limited has executed a sale and purchase agreement with a Genting Berhad subsidiary to acquire a 100-percent interest and operatorship in two production sharing contracts offshore Indonesia for $39 million. Under the terms of the agreement, a wholly owned subsidiary of AWE will acquire assets that include an undeveloped oil field with an estimated 76 MMbbl of recoverable oil. The two PSCs, the North West Natuna PSC and the Anambas PSC, are located in the Natuna Sea in 230 to 295 feet (70 to 90 meters) of water. The NWN PSC contains the undeveloped Ande Lumut oil field, which is estimated to contain 76 MMbbl of recoverable heavy oil, and three exploration and appraisal wells. The Anambas PSC contains the Anambas gas field, discovered in 2006, together with a number of additional exploration prospects within an offshore area containing significant gas development and pipeline infrastructure. The transaction is effective from Jan. 1, 2012 and is anticipated to be complete by February 2012. The purchase will be funded by cash reserves and proceeds from part of AWE’s stake sale in the BassGas Project.
Nido to Acquire 2D Data over Service Contract 58
Jan 25, 2012 – Searcher Seismic, on behalf of the Service Contract 58 Joint Venture, is acquiring 621 miles (1,000 kilometers) of new 2D seismic data over the greater Bikuda ??? Bulador prospect area in the northern sector of the area. The prospects were high-graded by subsurface work performed in 2011. The survey will help to mature these prospects to drillable status, so they can be considered as candidates to meet the sub-phase 3 commitment well due before January 2014. The survey is expected to commence in the near future. Service Contract 58, operated by Nido with a 50 percent stake, is a large deepwater block covering approximately 3.3 million acres (13,440 square kilometers) that lies immediately outboard of the giant Malampaya gas field. No wells have been drilled in the block to date. Water depths are in excess of 3,281 feet (1,000 meters) over most of the block.
MEO Australia Creating POD for Seruway PSC
Jan 24, 2012 – MEO Australia says it is working on a variety of activities aimed at maturing a Plan of Development (POD) for the Gurame gas discovery within the Seruway PSC offshore Indonesia. This POD maturation, coupled with the Kuala Langsa discovery and the improved definition of the Ibu Horst exploration prospects will underpin its future plans to attract a farm-in partner for the Seruway block. MEO has committed to acquiring 172,974 acres (700 square kilometers) of 3D seismic and to drill a well by the end of 2012. The Seruway PSC covers an area of 898,228 acres (3,635 square kilometers) and contains two gas discoveries – Gurame and Kuala Langsa – including several exploration opportunities.
Asia – Far East
ConocoPhillips Reaches Settlement Agreement Related to Peng Lai Oil Spill
Jan 25, 2012 – ConocoPhillips and the China National Offshore Oil Corp. have reached an agreement with China’s Ministry of Agriculture to resolve issues related to the June 2011 incidents at the Peng Lai 19-3 field in Bohai Bay. The company will make a compensation payment of $160 million to settle public and private claims of potentially affected fishermen and bay communities from the oil spill. ConocoPhillips will also designate a portion of its $16 million environmental fund to improve fishery resources. Peng Lai is located on the Bozhong Block 11/05 in approximately 75 feet (23 meters) of water.
Project Details: Peng Lai
N. America – US GOM
Marlin Primes Eugene Bit
Jan 26, 2012 – Marlin Energy is preparing to spud the A-2DST01 well, a sidetrack of the existing A-2 well, targeting reserves in the Tex X2 sandstones. The operator is using the Ocean Columbia (250′ ILC) jackup to drill the well at the Eugene Island Field in the GOM. Two sidetrack wells are planned to access new reserves, said partner Leni. Potential pay zones have been identified in the Tex-X2 and X3 reservoirs, and if completed successfully, will lead to an immediate increase in production. The A#2 sidetrack is targeting a downthrown fault block which Marlin considers to have good seismic amplitude. The fault block has an estimated mean recoverable reserve of 0.5 million barrels of oil within the primary, Tex-X2, target level at a depth of approximately 13,000 feet (396 meters) subsea. The slightly deeper Tex-X3 reservoir will also be tested by the well.
Pyrenees Slated for Production in 1Q12
Jan 24, 2012 – The Pyrenees field is in its final stages of flowline and umbilical installation. Liquids-rich gas and condensate production is expected by February 2012 at a gross rate of 60 MMcf/d. Pyrenees is located on Garden Banks 293 in 2,100 feet (640 meters) of water.
Project Details: Pyrenees Discovery
Stone Acquires Stake in Wideberth Development in GOM
Jan 24, 2012 – Stone Energy has acquired a 25 percent non-operated working interest in the deepwater Wideberth development project. The company says that first production from this gas satellite tie-back is expected in 2Q12. Wideberth is located in 3,700 feet (1,132 meters) of water on Green Canyon Block 490.
Project Details: Wideberth
Shell to Appraise Vito in GOM
Jan 20, 2012 – Shell is on location at Mississippi Canyon Block 940 to drill the No. 2 appraisal well on the Vito prospect. The operator is using the Noble Danny Adkins (UDW semisub) to drill the well. Drilling should take about 145 days. The discovery is located in 4,206 feet (1,282 meters) of water.
Project Details: Vito
Australia
Chevron Hands Technip Wheatstone Contract
Jan 26, 2012 – Technip Oceania, an Australian subsidiary of France’s Technip Group, has received a contract by Daewoo Shipbuilding and Marine Engineering for the detailed design of Chevron’s Wheatstone offshore gas-processing platform. The offshore portion of the project compromises the development of gas fields in the WA-17-R and WA-253-P petroleum titles located on the northwest shelf offshore Western Australia in water depths of 230 to 655 feet (70 to 200 meters). Subsea gas gathering systems will transport production to the processing platform where the gas and condensate will be treated. It will then export to the onshore gas plant at Ashburton North. Work is scheduled for completion in the second half of 2012. The Chevron-operated Wheatstone project compromises the Wheatstone and Iago gas fields, located in water depths between 330 and 850 feet (100 to 260 meters).
Project Details: Wheatstone
McDermott Makes Big Splash with Ichthys Surf Contract
Jan 25, 2012 – Inpex has granted McDermott International a letter of award for the Ichthys gas/condensate field offshore Australia. The surf contract, with a value of $2 billion, is the largest subsea contract McDermott has received to-date. This project includes engineering, procurement, construction, installation and pre-commissioning of production flowline systems, a MEG injection system, plus start-up condensate transfer and fuel gas transfer flowline systems, control systems, as well as other associated SURF elements in water depths of up to 902 feet (275 meters). McDermott will also install mooring systems for the FPSO and central processing facility, as well as, installation engineering for future flowlines, risers and umbilicals. Engineering work has commenced with fabrication slated for 2013. Gas from the Ichthys field, in the Browse Basin approximately 124 miles (200 kilometers) offshore Western Australia, will undergo preliminary processing offshore to remove water and extract condensate. The gas will then be exported to onshore processing facilities in Darwin via a 552-mile-long (889-kilometer-long) subsea pipeline.
Project Details: Ichthys
ConocoPhillips to Drill Boreas in February
Jan 24, 2012 – ConocoPhillips is gearing up to commence a drilling program in the Browse Basin Australia. The first well, Boreas-1 in WA-315-P, is located 2.7 miles (4.2 kilometers) east of the Poseidon discovery. The well will be drilled in a crestal position on a previously untested fault block with significant gas potential. ConocoPhillips is funding 80 percent of Boreas-1 to fulfill its farm-in commitments. The operator will use the Transocean Legend (mid-water semisub) to drill the well in February 2012.
MEO to Acquire 3D Data over Permit WA-454-P
Jan 24, 2012 – MEO Australia has performed a technical evaluation of the Marina-1 gas and liquids discovery in permit WA-454-P in the Bonaparte Gulf. MEO says that the evaluation has provided sufficient encouragement to warrant an early investment in 3D seismic, as well as information on the nearby Breakwater prospect. Design of and tendering for the Floyd 3D seismic survey targeting Marina, Breakwater and two other leads were completed during the quarter. The contract for acquisition of the Floyd 3D seismic survey was awarded in early January. Acquisition is expected to commence in February and to be completed in March.
Eni to Drill Heron Appraisal Well 3Q12
Jan 24, 2012 – Eni will use the jackup ESNCO 109 (350′ ILC) to drill the Heron-3 appraisal well. The vessel is expected to arrive late in second quarter 2012 with drilling to occur during the third quarter. Heron is located in NT/P68 permit in the Bonaparte Basin offshore Australia.
Project Details: Heron
MEO Commences 3D Seismic Survey in AC/P 50 and AC/P 51
Jan 20, 2012 – MEO Australia Limited has commenced acquisition of a 125,282 acre (507 square kilometer) Zeppelin 3D seismic survey in AC/P 50 and AC/P 51 in the Ashmore Cartier region of the Timor Sea. The survey is scheduled to take about 23 days to record. The permits are in permit year three of the primary exploration term. The Zeppelin 3D seismic acquisition will fulfill the current year work obligation subject to receipt of regulatory approvals for a work program variation for AC/P51.
Other
Statoil Acquires Acreage Offshore Greenland
Jan 23, 2012 – Statoil has acquired a 30.625 percent working interest at the Pitu license in Baffin Bay. The license was awarded to Cairn Energy during the first Baffin Bay licensing round in December 2010. Cairn will continue as operator and will retain a 56.875 percent working interest while partner Nunaoil will retain its carried interest of 12.5 percent. The work program includes the interpretation of recently acquired seismic data. The partnership will evaluate the seismic data prior to making a decision on drilling an exploration well. Cairn will retain operatorship at this stage, while Statoil will operate any future development.
N. America – Mexico
Pemex Confirms Veracruz Hydrocarbon Find
Jan 24, 2012 – Pemex says exploratory well Puskon-1 has proved the existence of an active petroleum system off the coast of Tuxpan, Verazruz, recording a series of hydrocarbon demonstrations. The well, drilled in a water depth of 2,122 feet (647 meters), was designed to evaluate the potential of a possible formation of the Mesozoic, which extends over an area of about 4.9 million acres (20,000 square kilometers). Pemex says the well was set to reach a total depth of 26,657 feet (8,125 meters) but confirmed the presence of wet gas at 23,622 feet (7,200 meters).Recorded temperatures and pressures were higher than predicted at 25,039 feet (7,632 meters). It also updated the geological-geophysical interpretations in order to propose a new future exploration location to assess the potential of this oil objective.
Africa – Other
Afren Plans to Spud Orpheus Prospect in 2012
Jan 24, 2012 – Afren plans to drill the Orpheus prospect in 2012 from an offshore location, and is in the process of securing a jackup drilling rig capable of undertaking this work. During Q4 2011 over 559 miles (900 kilometers) of deepwater 2D seismic was acquired, which is currently being processed. Final results are expected at the end of the 1Q 2012. The Orpheus prospect is situated in the Tanga block mainly offshore northeast Tanzania in coastal to shallow marine waters.
Project Details: Orpheus
Anadarko to Conduct Extensive Testing Program at Barquentine
Jan 20, 2012 – Anadarko is preparing to spud the Barquentine-3 well offshore Mozambique. The Deepwater Millennium (UDW drillship) is currently on location where it will commence an “extensive” testing program, reported Rigzone’s RigLogix Database. The operator plans to install observation gauges and conduct several flow tests. The discovery lies offshore Area 1 of Mozambique’s Rovuma Basin.
Project Details: Barquentine
Africa – West
Afren Plans to Drill Additional Development Well at Okoro
Jan 26, 2012 – Production at the Okoro field has averaged at 15,800 bopd on a gross basis during the period, reported Afren. In the first quarter of 2011, two infill wells were brought onstream, and debottlenecking work was also undertaken in order to increase the production handling capacity of the Okoro FPSO. Afren expects to drill a development well from the existing unmanned wellhead platform at the Okoro field. The Okoro field is located in OML 112 in shallow water offshore Nigeria.
Afren Mulling Okwok Development Plans
Jan 26, 2012 – Afren completed an Ocean Bottom Cable 3D seismic survey over the whole Ebok/Okwok/OML 115 area in 3Q11. The operator is currently processing the new data, which is slated for completion by 2Q12. One of the primary purposes of the new data is to assist in development planning for the Okwok field, and to pinpoint an additional appraisal well that the consortium will drill in the second half of the year, ahead of formal submission of a FDP to the Nigerian authorities. Afren is leaning towards a development plan that incorporates a separate dedicated production processing platform tied-back to the existing Ebok FSO, located about 8 miles (13 kilometers) to the west. The Okwok field is situated on OML Block 67 in 131 feet (40 meters) of water offshore Nigeria.
Project Details: Greater Ebok-Okwok Complex
Oriental Ramps Up Ebok Production
Jan 26, 2012 – Oriental Oil reported that initial phases of the Ebok development have been completed, following the commissioning and ramping of all 14 production wells. Reservoir performance and well deliverability recorded at the field to date are in-line with prognosis, with production processing and regular crude oil offtake operations running smoothly. The Transocean High Island VII (250′ ILC) jackup remains on location at the west fault block area of the field. The consortium plans to drill up to four horizontal production wells from the west fault block location targeting oil-bearing reservoir zones that were not drilled during the initial phases of field development work. The field partners also plan to drill an exploratory well on the Ebok north fault block during the first half of the year. Ebok is located on Block OML 67 offshore Nigeria in a water depth of 135 feet (41 meters).
Project Details: Greater Ebok-Okwok Complex
CAMAC Energy Enters Gambia
Jan 23, 2012 – CAMAC Energy has entered into an agreement with the Gambian Ministry of Petroleum on the provisional award of two offshore exploration blocks, A2 and A5, in water depths ranging in 1,969 to 3,281 feet (600 to 1,000 meters). CAMAC Energy will operate the blocks with an 85 percent interest, which cover a total surface area of 658,783 acres (2,666 square kilometers). Gambia National Petroleum Company will be carried at 15 percent through first oil. The two exploration blocks are located in the highly prospective West African Transform Margin, home to several recent major discoveries in Ghana (Jubilee, Odum) and Sierra Leone (Venus, Mercury). Additionally, in 1979 Chevron drilled the Jammah-1 well on the basis of sparse 2D data in Block A2. The well had gas shows, thereby establishing the presence of hydrocarbons in the area. Extensive 3D seismic shot on the two Gambian blocks A1 and A4, immediately west of the blocks A2 and A5, has revealed a number of material prospects and leads according to the operator African Petroleum Corporation Limited. One of the identified prospects, Alhamdulilah, has potential mean unrisked resources of approximately 500 million barrels.
Hyperdynamics Suspends Sabu-1
Jan 23, 2012 – After encountering equipment problems, Hyperdynamics has suspended drilling operations on the Sabu-1 exploratory well offshore Republic of Guinea. Repairs will be made and the delay is estimated to take about a week. The well reached a total subsea depth of 7,297 feet (2,224 meters), putting the well near the top of Cretaceous age sediments, and the next string of 13-3/8 inch casing was successfully set. Following retesting of the blowout preventer, the well reached a depth of 7,559 feet (2,304 meters). The operator expects to test prospective upper Cretaceous sandstone reservoirs while it drills the Sabu-1 well to a total subsea depth of about 11,811 feet (3,600 meters).
Project Details: Sabu

Source

Military warns gas imports at risk

image

By Carola Hoyos, Defence Correspondent

UK military leaders have raised concerns that more than 80 per cent of the UK’s liquefied natural gas imports would be halted if Iran made good its threat to block the Strait of Hormuz.

Ministers and senior military figures have been warned that almost half the UK’s gas imports, and 84 per cent of its LNG imports, use the waterway, say people within the Ministry of Defence and the Department of Energy and Climate Change.

Since December, Iran has repeatedly threatened it would block the critical shipping lane at the mouth of the Gulf if its oil exports were blocked. One-fifth of the world’s oil and one-third of its LNG passes through the strait.

Lord West, former head of the Royal Navy and security adviser to Gordon Brown when the latter was prime minister, told the Financial Times that, if the strait were blockaded, the sharp fall in the UK’s gas supplies would be the country’s single most critical issue.

“I have no doubt at all that this would be the biggest problem for us,” Lord West told the Financial Times, adding that the UK would also have to weather the economic fall-out from higher global oil and gas energy prices if shipping through the strait was interrupted.

The risk has risen as refiners have stopped buying Iranian oil ahead of the expected decision to enforce sanctions in response to Tehran’s attempts to develop a nuclear arms programme.

Furthermore, Iran’s upcoming presidential elections are adding to Tehran’s need to posture, said Christopher Parry, the MoD’s former director-general of development, concepts and doctrine.

“In strategic terms, the issue with the Iranians is not so much about nuclear, it’s about the fact that they have an election in 2013. What they are trying to do is create a state of crisis and emergency, which I think will lead them to defer the election because they know they are going to get hammered unless they are able to rig it,” he said. Mr Parry said in an interview.

For the UK, that would mean an interruption of gas supplies from Qatar, which has no viable export alternative to the strait.

Since 2010, the UK’s gas imports from Qatar have risen 67 per cent, while those from Norway are down 17 per cent and the UK’s North Sea supplies have continued to dwindle. From August to October last year, the most recent period for which the DECC has data, all the UK’s LNG imports – or 46 per cent of its total gas demand – came from Qatar.

Less than 1 per cent of the UK’s oil imports travel through the strait.

The DECC said: “We are aware of the importance of Hormuz, both in terms of oil and LNG imports to the UK. We are therefore working across Whitehall on this issue. Relevant ministers have been briefed.”

Other countries are far less vulnerable than the UK, in large part because they have a more diverse pool of suppliers and more storage capacity.

Frank Harris, analyst at Wood Mackenzie, the energy consultancy, said the UK’s storage levels were high thanks to the mild winter, but he warned that the country was far behind others, such as Japan, in minimising its energy vulnerability.

“There is a lesson for UK plc here: unless you are going to start buying contractual gas on a firm basis from a diverse portfolio of suppliers, you are going to risk ending up in this situation again.”

Source

UK: Cuadrilla Unveils Huge Shale Gas Find

image

Cuadrilla Resources Ltd., a private-equity backed shale-gas explorer in the U.K., said drilling results indicated its license area in northwest England may hold 200 trillion cubic feet of the fuel.

We’ve got a very sizable resource in place,” Dennis Carlton, executive director of Cuadrilla Resources, said in a phone interview from Blackpool, England. “Without drilling individual units within the thick shale we don’t know what the recovery factor will be.”

Two exploration wells near the seaside resort of Blackpool found shale formations almost 10 times as thick as typical U.S. deposits, Carlton said. Hydraulic fracturing, a process that uses water, sand and chemicals to smash apart rocks and release trapped fuel, reversed declines in U.S. natural-gas output and made it the world’s largest producer.

As many as seven exploration wells may need to be drilled, fractured and tested before more information can be given about recoverable reserves, he said. Investors in Cuadrilla include Riverstone Holdings LLC, led by former BP Plc Chief Executive Officer John Browne, and AJ Lucas Group Ltd. (AJL)

In the Marcellus, if you have a 300- to 400-foot interval, that’s on the high side,” he said, referring to one of the largest U.S. shale-gas basins. “We’ve got 3,000 foot of shale.”

The U.K.’s largest shale resource found to date is equivalent to 5.6 trillion cubic meters, or about three times Norway’s existing, proved reserves. Norway is the second-largest gas exporter to Europe and the biggest foreign supplier to Britain.

Recover Fraction

Cuadrilla is likely to be able to recover only a fraction of the gas trapped in the rocks. The U.K.’s technically recoverable shale resources are 20 trillion cubic feet, the U.S. department of Energy said in an April report.

The company has 1,200 square kilometers (300,000 acres) under license in northwest England, covering 80 to 90 percent of the shale in the area, he said.

We’ve got the best of the best, at least in the Bowland basin,” he said.

North Sea gas production is declining and the U.K. is increasingly reliant on imports to meet Europe’s highest demand for natural gas.

Cuadrilla voluntarily halted fracking at its operations in June after “small tremors” were reported in the area, according to its website. The company will submit a report to the Department of Energy and Climate Change in October, Carlton said.

Carlton estimated a “mid-case” scenario of drilling 400 production wells from 40 well pads in the future. To date they have drilled two exploration wells and have historical data from three 10- to 15-year-old wells drilled by British Gas.

Original Article

%d bloggers like this: