DEA, Sterling line up more wells for North Sea Breagh development

Offshore staff

CALGARY, CanadaSterling Resources expects a new round of development drilling to start late this year on the Breagh Alpha platform in the UK southern North Sea.

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.

08/11/2015

 

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