LONDON – Caithness Petroleum has completed an equity rearrangement with Trap Oil covering a prospect in the UK northern North Sea.
The company’s wholly owned subsidiary Caithness Oil will acquire 100% working interest in the Forse prospect, which runs up to the Caithness coastline of northern Scotland in blocks 11/23 and 11/24.
There could be 97 MMbbl of prospective resources in the Forse Volgian interval, with further upside at the Beatrice and Triassic intervals. An exploration well to test all three intervals is planned for this year.
In exchange, Caithness returns to Trap the 35% interest in the Knockinnon field it acquired under an earlier farm-in agreement, and is therefore no longer obliged to carry Trap for drilling costs. However, Caithness retains its original 30% working interest in Knockinnon, and can participate in a well if drilled by Trap.
Both Forse and Knockinnon could be developed using onshore facilities on the Caithness coast, with the advantage of lower per-barrel development capex and shorter lead times to first oil production.
Currently, 80% of Caithness Oil’s revenue comes from the production of the nearshore North Sea Lybster field.