Granby Oil and Gas Plc announces the discovery of oil at the Kerloch structure in Block 211/22a NW in the UK Northern North Sea. The Kerloch well, 211/22a-10, was drilled to a total depth (TD) of 12,282 feet and encountered a full Brent reservoir sequence, as predicted prior to drilling. The top of the Brent sandstone section came in approximately 60 feet high to prognosis. The majority of the Brent sequence was successfully cored, and extensive electric wireline logging operations are now ongoing and nearing completion.
The well has discovered an oil column of some 116 feet in the Ness Formation and a number of oil samples have been taken. The crude oil gravity is around 32 degrees API with a gas-oil ratio in line with other discoveries in the area. The Kerloch well was designed as a slim-hole finder well with a long open hole section being drilled to TD. Given the successful gathering of comprehensive data, including cores, wireline logs, reservoir pressure measurements and fluid samples, the joint-venture group has decided not to carry out a drill stem test in this well as this would add significant cost and technical risk. There has been a considerable number of tests of the Brent sands in neighbouring wells in the area, including the 2006 East Causeway well which flowed from the Ness Formation in the block immediately adjacent to Kerloch at stabilised rates of up to 7,500 barrels of oil per day. A resource update will be issued once the relevant analysis is complete.
The Kerloch well will now be suspended to allow potential re-entry and future use as a development well. Granby holds a 10% interest in the Kerloch oil discovery and throughout Block 211/22a NW, which already contains an earlier oil discovery.
The assignment of the 10% interest to Granby is subject to approval of the Secretary of State for the Department of Business, Enterprise and Regulatory Reform (DBERR) to the assignment of Licence interests to Granby.
David Grassick, Managing Director of Granby Oil and Gas, said:
“We are delighted with this result following our recent farm in to the Kerloch block, and we are looking forward to a busy year ahead in 2008 with rig slots already booked for three wells including the Monkwell appraisal well.”
Bob Moore, Commercial Director of Granby Oil & Gas, said:
“Following the recent sale of Galoc, Granby is delighted to have recycled some of the funds received into a successful North Sea well.”
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