North Sea Cladhan heading for mid-summer startup

Offshore staff

CALGARY, Canada – Sterling Resources has issued a progress report on its various projects in the UK and Dutch North Sea.

Development drilling has finished at the TAQA-operated Cladhan field development in the UK northern North Sea and the John Shaw rig has departed. Topsides modifications work continue at the Tern platform in preparation for receiving Cladhan’s production.

Riser pull-ins at Tern are due to be completed, with first oil from Cladhan slated for end-July. Costs for the project have increased.

Sterling continues to pursue farm-outs to its UK license blocks containing the Ossian/Darach and Niadar prospects in which it has a 100% interest. 

Terms for the license containing the Lochran prospect have been amended to reflect a new drill or drop work program, with a one-year extension granted until January 2016. However, the well commitment will likely not be pursued, leading to the remaining area of the license being surrendered prior to this date.

Technical evaluation continues on the license containing the Belinda and Evelyn discoveries. Plans for drilling or development must be agreed with the regulator by November, otherwise the concession will have to be relinquished.

In the Dutch sector, Sterling (as operator) expects processing of 500 sq km (193 sq mi) of new 3D seismic over the F17 and F18 blocks to be completed by mid-year, with interpretation finished by year-end.

The seismic was acquired last year over various oil discoveries and prospects in the Jurassic and Early Cretaceous horizons, the aims being to improve resolution of reservoir distribution and reduce structural uncertainty; to evaluate new exploration potential in the area; and to assist assessment of development options such as a tieback to a potential Wintershall-operated offshore oil hub.

Extensions to the licenses have been granted to January 2017.

A 2012 3D survey over the E03 and F01 blocks (Sterling 30%, non-operator), has been processed and is currently being evaluated. By December, the partners must take a drill or drop decision.


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