Venture Production plc, the Aberdeen based UK independent oil and gas production company, today announces on behalf of itself and its partners, Bow Valley Petroleum (UK) Limited and Atlantic Petroleum UK Limited, that the UK Department of Trade and Industry has given its approval for the development of the Chestnut oil field, located in Block 22/2a.
The Chestnut Field will be developed utilising two sub-sea wells tied back to the Sevan Marine SSP300 floating production vessel. The 22/2a-11x well, drilled in 2001 will be re-used along with a new water injection well planned to be drilled during the second half of 2006. The SSP300 will be a newly constructed vessel and is anticipated to be installed in the field during 2007.
Estimated total recoverable reserves for the field amount to between six and nine million barrels, with first production from the field scheduled for the second half of 2007.
Commenting on the news, Mike Wagstaff, Chief Executive said:
'We are delighted to receive government approval to develop the Chestnut Field. With recoverable reserves of less than 10 million barrels, this will be one of the smallest stand-alone oil field developments yet in the North Sea. Utilising the Sevan SSP offers a significantly less capital-intensive development solution than either a sub-sea tie-back to a nearby host platform or a conventional ship shaped FPSO. Consequently, the Sevan SSP offers a simple, re-usable, low cost solution which has the potential to lower the threshold for economic development of 'stranded' oil fields in the North Sea'.
