UK’s Baron Oil has entered into an option agreement with Corfe Energy to be assigned part of its rights to farm into UK North Sea license P2235, containing the Wick Prospect.
The Wick Prospect lies close to the shore of northeast Scotland, five kilometers north and updip from the Lybster Field, which has been developed from onshore facilities.
The prospect has been defined by 3D seismic mapping by Baron and others. Also, the recent announcement by Upland Resources Limited stated it has estimated in-place P50 Prospective Resources of around 250 million barrels of oil sands of Jurassic and Triassic age (unrisked) in the license area.
Baron said on Monday that the farm in option must be exercised by February 28, 2018.
The company also said that the Wick prospect would be tested by a well drilled to a total depth of 1,200 meters in a water depth of 50 meters. Drilling operations are expected to begin in September 2018, at an estimated total cost of £4.2 million ($5.9 million).
Under the terms of the agreements between Corfe and the license operator, Corallian Energy Limited, if the option is exercised by Baron, the company would pay 20 percent of the well costs (£840,000), plus £6,500 in back costs, to earn a 15 percent interest in the license.
Bill Colvin, Baron chairman, said: “The Wick Prospect offers an excellent opportunity to drill a relatively low-risk well this year with significant potential and provides the possibility of early, low-cost development. We are also in the process of evaluating another near-term drilling opportunity in the UK.”
Peru block XXI
Baron also informed on Monday that it still intends to drill El Barco-3X well in Peru block XXI on the Minchales trend. Baron is currently in discussions with a third party interested in participating in the well.
The block is currently in force majeure, due to some difficulties with the local administration. Baron said that it hoped these could be overcome shortly and the well can be drilled within the next six months. The well is planned to test a low-risk, relatively small, shallow gas play and a higher risk, higher potential oil and gas play in fractured basement.
“Now that we have the funds, we will finally be able to move forward with the drilling of the El Barco well in our 100% owned onshore Peru Block XXI, and we are encouraged by third-party interest in the prospect,” Colvin added.