The company and operator DEA UK plan two to four new wells (A09-A12), of which the first (A09 and A10) are currently budgeted. In addition they are considering re-entering (possibly via a side track) and hydraulically fracking production well A01, and a side track/hydraulic frack of another producer.
Front-end engineering and design work started last month for onshore compression at the Teesside Gas Processing Plant in northeast England that receives Breagh’s gas. A final investment decision on this project is due in October.
The compression could be operational during the second half of 2017, potentially boosting production (initially) by 40-50%.
Last year the partners put Breagh Phase 2 development planning on hold while they assessed drilling results and reservoir characterization of the southeastern areas of the field, based on a 2014 3D seismic survey.
They now expect to submit a field development plan addendum for Phase 2 in 2016.
Sterling’s blocks 42/2a, 42/3a, 42/4, 42/5, and 36/30, around 25 km (15.5 mi) north of Breagh, contain the Darach and Ossian prospects. The company is trying to farm down its 100% interest during 2015 ahead of drilling a commitment well by the license expiry date of December 2018.
Additionally, Sterling has secured an extension of the license for blocks 49/18b and 19b containing the Niadar prospect until December 2017.
As for the TAQA-operated Cladhan development in the UK northern North Sea, the host Tern platform was shut down in June to enable final tie-in of the topsides and subsea systems prior to commissioning and the start of production from Cladhan at the end of September.
In the Dutch North Sea, Sterling has commissioned a 500-sq km (193-sq mi) 3D seismic survey over its F17 and F18 blocks, with processing and interpretation set to be completed by year-end.
The survey is intended to improve resolution of reservoir distribution and reduce structural uncertainty, as part of a program to evaluate new exploration potential in the area and development options such as a tieback to a potential new Wintershall oil hub.
The Dutch Ministry of Economic Affairs has extended the licenses until January 2017.