Approval secured for high-impact exploration well in North Sea

UK-based independent oil and gas company Parkmead Group has secured approval to drill a high-impact well on the Skerryvore prospects in the UK Central North Sea. This will be Parkmead’s first operated exploration well.

Following consultation with its joint venture partners in Licence P.2400, which encompasses the Skerryvore prospects, and having received approvals from the regulatory authorities, the company has reached an agreement to increase its stake in the Skerryvore project from 30 per cent to 50 per cent.

In an update on Thursday, Parkmead said it will continue as the operator on the licence and Skerryvore will be its first operated exploration well.

Parkmead’s joint venture partners in the licence going forward will be Serica Energy (20 per cent) and CalEnergy (30 per cent). Serica Energy is the operator of another high-impact well in the North Sea, where it has recently encountered difficulties due to rig equipment failure.

In addition, Parkmead has received approval from the North Sea Transition Authority (NSTA) to enter the next phase of this licence with an agreement to drill the high-impact Skerryvore prospects. The company noted that its geotechnical work programme has confirmed the considerable multi-interval potential of Skerryvore.

The planned well will target the main stacked exploration prospects, at Mey and Chalk level, which studies indicate could contain 157 million barrels of oil equivalent (MMBoe) in the P50, the most likely case. The licence also contains additional prospectivity at the Ekofisk and Jurassic levels.

A successful discovery could be tied to existing and planned infrastructure in the vicinity. Namely, the area around Skerryvore is currently seeing important activity on several fronts, with Harbour Energy having reached an investment decision on the adjacent Talbot discovery and NEO Energy continuing with the redevelopment of Affleck.

Development activity is also taking place in the Norwegian sector in close proximity to Skerryvore at Tommeliten A, a licence operated by ConocoPhillips.

Tom Cross, Executive Chairman said the decision to proceed with drilling the Skerryvore prospects is a major milestone, adding that the company will continue to evaluate the exploration potential of other licences it holds.

“We are seeing renewed UK government interest in the North Sea, as it seeks to bolster energy security, and we are excited by the opportunities that exist within our assets in this prolific region.

It is worth reminding that Parkemead in late July launched a farm-out process to find a partner for the development of a project in the Greater Perth Area (GPA) in the UK Moray Firth.

Cross added: “Increasing our stake in Skerryvore comes on the back of delivering record gas revenues this year in the Netherlands. We will continue to focus on building a portfolio of high-quality energy projects through acquisitions, organic growth and the active management of our assets across all energy sectors.”