UK North Sea 15/13b-8 Exploration Well
Drilling of North Sea exploration well 15/13b-8 was completed on 9 March 2007.
The well began drilling on 24 February 2007 with the rig Borgsten Dolphin operated by Nexen Petroleum (UK) Limited and was targeting a Balmoral sandstone reservoir. The reservoir was encountered close to prognosis, but did not contain hydrocarbons. The well was drilled to a total depth of 7,140 feet (2,176 metres).
The well, which was drilled at no cost to Granby, is to be plugged and abandoned.
2007/8 Work Programme
Granby has an extensive work programme over the coming year.
Granby’s next well is expected to be the Burton Agnes-1 exploration well onshore Yorkshire, in mid 2007. This will be followed before the end of 2007 by the Tristan North West Development well in the Southern North Sea and the two Galoc development wells in the Philippines. Granby has also announced today, in a separate announcement, that the project financing for the Galoc Field development has been completed. A well on the Monkwell discovery is also planned in the next 12 months.
Granby and its co-venturers will be shooting seismic surveys over at least three licences in 2007. High resolution 2D surveys (with closely spaced lines and processed to simulate 3D) will be recorded over the Globe/Roebuck prospects in block 9/22 and over the Anglesey prospect in block 14/14b. Assuming favourable results from the new data these prospects can then be fast-tracked for early drilling.
Further high resolution 2D seismic data will also be recorded over the newly awarded 24th round block 16/11, specifically targeting 2 new prospects (Dove and Skylark).
In addition to this new data acquisition, Granby will also be undertaking a number of detailed seismic reprocessing projects within its portfolio – again, aimed at prospect de-risking and maximising the chance of exploration success. Examples include the Wheatsheaf prospect in block 44/27b, the Whitelock prospect in block 14/27b, the Oakleigh prospect in block 16/3f, and the Whalebone prospect in block 47/18. The Whalebone and Oakleigh prospects, in particular, are both promising candidates for early drilling and are expected to be fully matured by the end of this calendar year. Two other blocks (where Granby is currently in discussions with interested third parties) are 13/25 and 43/7. Block 43/7 contains the drill-ready Williamson prospect, a very low risk gas target exhibiting direct hydrocarbon indicators.
In accordance with AIM notice 16, the above resource information has been reviewed by Richard Moreton, Executive Director, who has over 22 years experience as a geophysicist within the oil industry.
David Grassick, Managing Director of Granby Oil and Gas, said:
“Whilst we are disappointed with this result on Guinea, Granby’s portfolio has many promising prospects which we are seeking to drill over the next two years.
We are already preparing a multi-well exploration programme for 2007 and 2008 based on our 22nd and 23rd Round licences, as well as preparing to farm out the licences recently awarded to Granby in the 24th Licensing Round which we expect will provide further drilling opportunities. Our next well will be the Burton Agnes-1 onshore well in Yorkshire.
Work on Granby’s first two developments (Galoc and Tristan North West), which are expected to generate cash flow early in 2008, is progressing well, with drilling scheduled in the second half of 2007. Additionally we anticipate a well will be drilled on a third development (Monkwell) within the next 12 months.”
Richard Moreton, Executive Director of Granby Oil and Gas, said:
“Granby is currently maturing its exploration prospects across its portfolio for drilling later this year or in 2008. Near term exploration activity is concentrated on de-risking prospects prior to drilling, both to increase their farmout appeal and to maximise the chance of exploration success.”
The interests in block 15/13b are: Nexen Petroleum (UK) 50%, Granby Enterprises North Sea Ltd 24.375%, Elixir Petroleum 13.125% and Gas Plus Italiana SpA 12.5%.