UK-based Corallian Energy has entered into a letter of intent with drilling contractor Ensco for the provision of a jack-up drilling rig to drill its Colter and Wick wells offshore the UK.
The Colter and Wick wells are located in licenses P1918 (UKCS Block 98/11a) and P2235 (UKCS Block 11/24b), respectively. Corallian is the operator of both licenses.
Corallian Energy explained on Monday that, within the letter of intent, the parties have agreed, subject to approvals and consents, headline terms for a suitable unit to conduct drilling operations in the third or the fourth quarter of 2018.
The P1918 license contains the Colter oil discovery located 2 kilometers south of the Wytch Farm onshore oilfield. Colter was originally drilled by offshore well 98/11-3 in 1986 which recovered oil on test from a 10.5 meters oil column within the Triassic Sherwood Sandstone, the main reservoir at Wytch Farm.
Recently merged and reprocessed 3D seismic data has identified potential up-dip of the discovery well. Should the well be commercially successful, development would be via extended-reach wells from onshore as per Wytch Farm.
The P2235 license contains the Wick prospect, a fault bounded trap with Jurassic sandstone reservoirs lying up-dip of the spill point of the Lybster oilfield in the Inner Moray Firth Basin.
United Oil & Gas, Corallian’s partner in the Colter license, said on Tuesday that owing to the fact that the well target is in shallow water, it enables the use of an offshore jack-up rig, keeping costs to a minimum.
United estimates its share of drilling costs to be under £1 million ($1.35M).
Brian Larkin , CEO United Oil and Gas, said: “The Colter Well will be drilled up-dip of an existing discovery in an established oil region. The addition of an excellent drilling partner, Ensco UK, will further strengthen our chances of success.”
Offshore Energy Today Staff