Faroe Petroleum has boosted its resources estimate for the Brasse discovery in the North Sea off Norway following the latest appraisal well results.
The company on Wednesday said the 31/7-2S Brasse sidetrack appraisal well was a success, increasing the estimated recoverable resource volumes to between 56 and 92 mmboe (from 43 to 80mmboe). This comprises of 46-76 mmbbls of oil and 59-97 bcf of dry gas.
According to Faroe, penetrated gross hydrocarbon-bearing reservoir section with approximately 18 meters of oil and 4 meters of gas in the sidetrack well.
The Brasse field discovery was made by Faroe in 2016 and is located within tie-back distance to existing infrastructure: 13 kilometers to the south of the Wintershall-operated Brage field platform, in which the Company holds a 14.3% working interest and 13 kilometers to the south east of the Statoil-operated Oseberg Field Centre.
Faroe Petroleum has carried out feasibility studies of the Brasse field development focusing on a sub-sea development solution tied-back to either one of the hosts in the nearby area.
This work is ongoing and external studies have already been undertaken for the joint venture for the Subsea Production System (SPS), flow assurance and pipeline and marine work, the company said.
The preliminary reservoir development plan includes three to six production wells and an optional water injection well for pressure support. Initial flow rates from the prolific Brasse reservoir are expected to be higher than previously thought, with predicted delivery rates above 30,000 boe/d and first oil in 2020/21.
Based on the completed reservoir and feasibility studies, preliminary total development capex has been estimated at c. $550 million for the mid-case development scenario consisting of four wells and one subsea template.
Key project milestones going forward include the Final Concept Selection and the submission of a Plan for Development and Operations (PDO), both of which are planned for 2018.
The appraisal well, drilled by the Deepsea Bergen drilling rig, will now be plugged and abandoned as planned.
Graham Stewart, Chief Executive of Faroe Petroleum said: “We are very pleased to announce the completion of this successful, Faroe-operated, appraisal program of the Brasse field, which considerably exceeded expectations and further confirms the commerciality of this discovery. The programme has established excellent reservoir quality and reservoir communication, together with excellent flow rates, even at the periphery of the field. This new data has resulted in an increased resource range to 56-92 mmboe and a substantial increase to flow rate expectations.
“The Brasse field is clearly a very significant and valuable asset, with very attractive economics even at long term low commodity prices. The close proximity of the field to existing competing infrastructure combined with its prolific reservoir qualities and shallow water depth ensure this field can be developed expediently, taking full advantage of the current low cost environment.
“As an established E&P operator, Faroe is well equipped to progress this important project and we look forward to providing further progress updates in the coming months.”