Page 12 - Euroil Week 31 2019

EurOil
NEWS IN BRIEF
EurOil
in the Bowland Shale, previously estimated at around 1,300 tcf by the British Geological Survey.
e initial exploration programme also con rmed that the Bowland Shale formation fractures in a way that is typical of an excellent shale gas reservoir. A complex fracture network was generated in the shale and sand injected into the fractures stayed in place during ow back.
Cuadrilla recently remobilised equipment and con rmed that it will return to hydraulic fracturing and ow testing of natural gas
in the third quarter of 2019. e upcoming work programme will be the latest step
in demonstrating the huge commercial opportunity of UK shale, including the potential for natural gas from shale to act as a domestic feedstock for hydrogen production.
Francis added: “It is clear the shale gas opportunity underneath Preston New Road remains critical to the UK and can also be a key enabler in regenerating not just the local Lancashire economy but across the country as a shale industry is created.
“ e Committee on Climate Change Net Zero report published in May 2019 forecast that, in 2050, we will need approximately
70 per cent of the natural gas we are using today to generate hydrogen for heating and transport and as back-up to renewables for generating electricity. Natural gas extracted from the shale beneath Lancashire would be far more environmentally sustainable and economically bene cial than the alternative of importing gas from around the world either in tankers as lique ed natural gas or cross continents by long distance pipeline. For this reason I am hoping our request to vary this planning condition will be approved.”
e work programme builds on Cuadrilla’s unique experience and expertise as the leading onshore shale exploration operator in the UK. e new hydraulic fracture plan will operate in line with the existing tra c light system
but one of the key di erences will be a more viscous fracturing uid which is expected to improve operational performance.
Cuadrilla Resources (UK), August 5 2019
Aker BP secures drilling
permit for Norwegian
licence
e Norwegian Petroleum Directorate has granted Aker BP ASA a drilling permit for well 30/12-2, cf. Section 15 of the Resource Management Regulations.
Well 30/12-2 will be drilled from the Deepsea Stavanger drilling facility at position 60°1’42.65”N and 2°46’3.24”E.
e drilling programme for well 30/12-
2 relates to the drilling of a wildcat well in production licence 986. Aker BP ASA is the operator with an ownership interest of 30 per cent. e other licensees are Petoro (30 per cent), Wellesley Petroleum AS (20 per cent) and DNO Norge AS (20 per cent).
e area in this permit consist of parts of blocks 25/2, 25/3, 30/11 and 30/12. e well will be drilled about 43 kilometres northeast of the Frigg eld.
Production licence 986 was awarded on 1 March 2019 in APA 2018. is is the rst well to be drilled in the licence.
e permit is contingent on the operator securing all other permits and consents required by other authorities prior to commencing the drilling activity.
NPD (Norway), August 5 2019
Euronav sells its oldest Vlcc for offshore project
Euronav NV is pleased to announce that Euronav Luxembourg, a subsidiary of Euronav, has sold the VLCC vessel VK Eddie (2005 – 305,261 dwt) to a global supplier and operator of o shore oating platforms. A capital gain on the sale of approximately $14.4mn will be recorded during the current quarter. e vessel has been delivered to
her new owners and will be converted into an FPSO and therefore leave the worldwide trading eet.
Euronav’s reputation for providing high
quality operational tonnage is appreciated in the o shore sector with the VK Eddie being the ninth vessel the Company has successfully introduced into an o shore project over the past decade. Euronav considers regular eet rejuvenation an important function of vessel management in providing quality services to its clients. With the transaction Euronav sold its oldest VLCC, bringing the total balance
of its VLCC eet to 42 VLCCs, with an averageage of 6.7 years.
Euronav (Belgium), August 6 2019
IOG spuds Harvey appraisal well
Independent Oil and Gas (IOG), the development and production company focused on becoming a substantial UK gas producer, is pleased to con rm that the Maersk Resilient rig spudded the Harvey appraisal well at 2230hrs BST on 6 August 2019. As previously indicated, completion of the well is expected to take approximately two months in the success case.
Harvey is centrally located within IOG’s asset portfolio in UK Southern North Sea Blocks 48/23c, 48/24a, and 48/24b, close to the ames Pipeline export route. e primary objective of the well is to con rm gas volumes which management estimate at 85/129/199 BCF Prospective Resources in the Low/Best/ High case, with a 63% Geological Chance
of Success, and secondly to demonstrate reservoir deliverability. If successfully appraised, the additional scale and synergies of a Harvey development could substantially enhance the portfolio’s overall value and returns.
On completion of the farm-out transaction announced on 26 July 2019 the Company’s designated partner, CalEnergy Resources Limited (“CER”), will have the option to acquire 50 per cent of the Harvey licences within three months of completion of the appraisal well. If this option is exercised,
CER will pay an additional £20 million
to IOG and a £0.95/MCF royalty on all of CER’s life-of- eld net gas production from Harvey (equivalent to £61.3 million if Harvey produces IOG’s 129 BCF Best Estimate Prospective Resources). is would maintain full alignment between IOG and CER across IOG’s entire SNS Assets.
e Maersk Resilient is a modern, high- spec rig with a strong operating history and an excellent safety record. e designated well operator is Fraser Well Management, who have extensive experience in drilling successful wells in the UK Southern North
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Week 31 08•August•2019