Venture Production plc, the Aberdeen based UK independent oil and gas production company, today announces that the Chestnut oil field has commenced production. Chestnut has been developed using the new Sevan Hummingbird floating production storage and offtake unit ('FPSO'). Venture is the operator and holds a 69.875% working interest in the part of block 22/2a containing the Chestnut field.
The Hummingbird is the second Sevan 300 unit to be built and the first cylindrical FPSO to be deployed in the North Sea. It will stay on location until the Chestnut field ceases production but will then be available to Venture for re-use on a follow on project.
Chestnut has net recoverable reserves estimated at 6.8 million barrels of oil equivalent ("MMboe") and initial average net production rates are expected to be between 6,000 and 10,000 barrels of oil equivalent per day ("boepd").
A second Chestnut production well was spudded on 7 September 2008. This well will be completed and tied-in during early 2009 and is expected to both significantly increase production rates, recoverable reserves and extend the field life. Investment in this second production well was sanctioned in May 2008 and on current plans will be drilled and brought onstream in less than nine months.
Commenting on the news, Mike Wagstaff, Chief Executive said:
"Bringing Chestnut into production is an important milestone for Venture. Not only will Chestnut make a significant contribution to group production but it is also one of the smallest stand alone oil field developments in the North Sea. Utilising innovative new technology, Venture has been able to unlock the potential of an oil field which was originally discovered 22 years ago and represents a great team achievement by all our partners involved in the field development. Completion of this project has taken a bit longer than we had originally anticipated but, given that we sanctioned this development when oil prices were less than a third of where they are today, it is a fantastically valuable project for Venture and its co-venturers."
Partners in the licence related to the Chestnut Field are:
Venture Production (operator): 69.875%
Bow Valley Petroleum: 15.125%
Atlantic Petroleum: 15.000%.
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