There are several regulatory approvals and notifications still required before the consenting process is completed for the wells.
When all the necessary approvals have been obtained, the wells will be drilled as a back-to-back programme using the ENSCO-72 Jack-Up rig and, subject to the approvals being in place, Corallian will commence the programme with the drilling of the Wick well during December 2018.
Following completion of the Wick well, the rig will be mobilised from the Moray Firth to the English Channel to drill the Colter well.
The drilling campaign will be operated on behalf of Corallian by Fraser Well Management Limited. Orbis Energy Limited is acting as environmental consultant.
Wick, which will be the first target of the campaign, is an exploration prospect with estimated Mean Prospective Resources of 26 million barrels of oil equivalent*. Corallian holds a 40 per cent. interest in the project and will be paying 20 per cent. of the well costs, capped at a gross cost of £4.2 million, and thereafter its pro rata share of 40 per cent. of costs.
The drilling of the Colter appraisal well will directly follow completion of the Wick well. This well will be an appraisal of the 98/11-3 oil discovery, which contains an estimated Mean Prospective Resource of 23 million barrels of oil equivalent*. It is located in a structure adjacent to the highly significant Wytch Farm oil field. Corallian has a 49 per cent. interest in the project and will be paying 40.33 per cent. of the well costs, capped at a gross cost of £8.0 million and thereafter its pro rata share of 49 per cent. of costs.
* Corallian management estimate
Stephen Williams, Co-CEO of Reabold, commented:
“We are very pleased to report this approval from OPRED, signalling impending activity at both Wick and Colter. Both prospects carry highly attractive economics with low development costs and fast payback in the event of success. Our investment in Corallian has given us significant exposure to both projects as well as additional opportunities within the Corallian asset base.
With Wick now planned in December 2018, and continued activity across the rest of our portfolio, Reabold shareholders can look forward to a very busy few months ahead as we seek to de-risk several high impact opportunities.”
Malcolm Butler, Chairman and CEO of Baron, commented:
“We are pleased with the decision by OPRED to advise the Oil and Gas Authority of its in-principle agreement to the issue of the relevant consents for the drilling of both the Colter and Wick wells. While there are still further approvals to be obtained before drilling can commence, the decision by OPRED represents an encouraging milestone towards meeting our revised timetable to drill Wick in December 2018, followed immediately by Colter. We look forward to keeping the market apprised of developments in due course.”
Simon Gorringe, CEO of Andalas Energy and Power PLC said
“We are pleased with the continued progress of the operator towards the commencement of the proposed well, which follows today’s announcement and the recent announcement of the contracting of the Ensco-72 rig to execute the Wick and Colter drilling programme.
“The drilling of the Colter well will expose Andalas shareholders to an exciting period of drilling activity, whilst we continue to work with our partners to complete the acquisition of Bunga Mas and to provide updates on the Badger licence. I look forward to keeping the market informed as we continue to progress our portfolio.”
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