Oil companies Upland and Baron Oil have been given consent from the UK Oil and Gas Authority to farm-into Corallian-operated block in the UK North Sea, containing the Wick prospect.
Upland last year entered into a conditional agreement with Corallian Energy to farm in to a 40% interest in Licence P2235, containing the Wick prospect, while Baron in March signed a deal with Corralian to take a 15 percent interest in Licence P2235 in return for paying 20 percent of the costs of the first well on the Wick Prospect.
The Wick prospect lies close to the shore of NE Scotland, 5 kilometers north and updip from the Lybster Field, which has been developed from onshore facilities.
According to Upland Resources, the Wick prospect 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.
Commenting on the farm-in approval Steve Staley, CEO of Upland Resources, said: “The UK Oil & Gas Authority’s consent to our farm-in to a 40% interest in the P2235 Licence is another significant milestone as progress is made towards initiating drilling at the Wick prospect in Q3 2018. This, alongside the Letter of Intent, agreed by Corallian Energy with Ensco, shows the efficient progress being made as the date of commencement of drilling gets closer.”
To remind, earlier this week, Corallian Energy, the operator of the block containing the Wick prospect, 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.
Malcolm Butler, Chairman & CEO of Baron Energy, which is getting a 15 percent in the license, said: “This approval enables Baron to formalise its 15% interest in the licence holding the Wick Prospect and become a full voting party under the Joint Operating Agreement, which is now being prepared and will govern operations on the license.”
While Upland has said that the Wick well will be drilled in the third quarter of the year, Baron has previously provided a more precise timeline, saying the well would be spudded in September 2018.
Offshore Energy Today Staff