The Press and Journal (Inverness, Highlands, and Islands)
Newcomers Zennor target first oil from field in 2019
Finlaggan test shows gas condensate would flow at stable rate
North Sea newcomer Zennor Petroleum is targeting first oil from its Finlaggan field in 2019 following a successful appraisal campaign.
Zennor, one of the few companies undertaking exploration and appraisal work in theNorth Sea, said the test revealed a gas condensate accumulation which flowed at a “stable rate” although this was “constrained by the capacity of the surface testing equipment”.
Finlaggan, which lies 130miles north-east of Aberdeen, was once estimated to hold up to 27million barrels of gas reserves.
Yesterday, Zennor said in a statement that the well data will now be used to “define” the size of the reserves “which we expect to demonstrate the commercial potential of Finlaggan consistentwiththerangeof pre-drill estimates”.
The field is close to Centrica’s producing Chestnut field and ConcocoPhillips’ vast Greater Britannia area.
The firm said its engineering teams have been making “good progress in discussions with the operators of potential offtake routes for the Finlagganhydrocarbons”.
The results of the appraisal comes as exploration drilling is at its lowest level since the 1960s.
Just 13 appraisal wells were drilled last year, and trade body Oil and Gas UK has predicted the figure will fall to between six and nine during this year.
Transocean’s Sedco 704 rig was used to spud the Finlaggan well and sidetrack, while Petrofac was contracted to deliver a “budget” subsea appraisal well campaign.
Surrey- based Zennor Petroleum was established in 2006.
Previously known as MPX, the firm is led by Martin Rowe, Rod Crawford and James Henry, formerArco executives, before its takeover by BP in 2000.
Zennor’s backing comes from Hong Kong- based Kerogen Capital, which pumped £70million into the business last year and has revealed plans to invest larger sums to pay for the development of existing assets, acquisitions and new licences.
In March Zennor flexed its muscles by completing the buyout of First Oil and Gas and Antrim Resources from the administrators of First Oil Expro for an undisclosed sum.