London-based Cluff Natural Resources has confirmed a ‘substantial’ increase in the prospective resources for its 100% held License P2248 (Block 43/11) located in the Southern North Sea gas basin.
The company said on Wednesday that this resource upgrade follows the completion of a technical evaluation and Competent Persons Report on the gas resources on the license by Xodus Group, an independent oil and gas consultancy firm, that assessed six most mature prospects on License P2248.
Across the company’s total portfolio, aggregate Best Estimate GIIP and P50 prospective resource estimated to have increased to 4.8 TCF and 2.5 TCF respectively, not including a number of additional leads and prospects which have yet to be fully quantified. Prospective Resources on P2248 were estimated in the range of 480 BCF to 4.75 TCF with a P50 of 1.73 TCF (Mean: 2.26 TCF).
Cluff Natural Resources’ Chairman and Chief Executive, Algy Cluff, said: “We are delighted to be able to confirm this very significant increase in the company’s prospective resource base following a thorough independent review. This work supplements the announcement on 30 September of the significant prospective resources for Licenses P2253 and P2258.
“The company has been working hard to quantify the potential of the licenses we were awarded in the 28th Round and this endorsement of the significant exploration potential associated with proven and new play types on our License P2248 confirms our long-held belief that the Southern Gas Basin still has a significant number of large and exciting prospects just waiting to be drilled.
“We now have a significant inventory of drilling targets across a range of play types and the key focus going forward is to attract the required partners and funding to ensure these prospects are fully appraised.”
The key prospects assessed in the Report on License 2248 are:
Cadence Prospect (Scremerston & Fell) – A large three-way dip and fault-bounded structure, the Cadence Prospect, with reservoir potential at multiple levels including the Scremerston and Fell Sandstone Formations with a Best Estimate GIIP of 1,282 BCF (Range 288 to 4,232 BCF) and unrisked P50 Prospective Resources of 769 BCF (Range 170 to 2,585 BCF).
Camden Prospect (Millstone Grit) – Overlying the Cadence structure, the Yoredale and Millstone Grit formations subcrop against the Base Permian Unconformity creating a stratigraphic trap similar to those producing elsewhere in the Southern North Sea. This stratigraphic prospect, Camden, has a Best Estimate GIIP of 322 BCF (Range 120 BCF to 782 BCF) and P50 Prospective Resource of 160 BCF (Range 58 to 405 BCF).
Bassett, Bathurst & Beckett Prospects (Bunter Sandstone) – A number of leads within the Bunter Sandstone, based on a new previously undrilled play, are also assessed within the Report. These three leads have a combined Best Estimate GIIP of 1,058 BCF (Range 352 to 2,173 BCF) and P50 Prospective Resources of 806 BCF (Range 252 to 1,766 BCF).
Extend & relinquish
The company also said on Wednesday that, as part of its portfolio management process, the decision has been taken to extend licenses on its most prospective acreage and relinquish, or partially relinquish, less prospective acreage within its Southern North Sea portfolio.
This will focus the company on core acreage (Licenses P2248, 2252, 2253 and 2258), reduce exposure to escalating license rental fees payable to the Oil and Gas Authority (OGA), and remove acreage from the portfolio which cannot be easily assessed due to poor data quality.
The company has received confirmation from the OGA that its request to extend the promote period on license P2248 and on license P2252 for a further year each – to November 30, 2017 – has been granted.
A request for the relinquishment of part of P2252 has been made to the OGA with an effective date of October 28, 2016.
Further, a request for the relinquishment of P2259 and P2261 has been made to the OGA with an effective date of October 28, 2016.