Source: EnCore Oil
EnCore Oil plc (LSE: EO.) has discovered oil with its Varadero exploration well in the Central UK North Sea.
Exploration well 28/9-2 located on block 28/9 was drilled to a Total Depth of 5,205 feet Measured Depth (M.D.) having successfully encountered excellent quality hydrocarbon bearing reservoir sandstones at 4,020 feet MD within the target Tay Sandstone level.
Initial analysis indicates the discovery of a 400 feet hydrocarbon bearing interval with a calculated net pay of 106 feet. Extensive wireline sampling and pressure testing of the hydrocarbon bearing zones have been undertaken and suggest the oil has an API of approximately 26 degrees. Analysis of the logs suggests excellent quality sands with average porosities of approximately 33 per cent.
The well will now be plugged and abandoned as planned and the Galaxy II rig will be moved to the Burgman prospect. Subject to any weather or operational delays, the rig should arrive at the Burgman location next week and a further announcement will be made upon the spud of the Burgman well.
"This is an excellent result at Varadero which further supports our view that Block 28/9 likely contains a series of accumulations in Tay "injectite" sands," said Alan Booth, EnCore's CEO. "We are becoming increasingly confident that the seismic data directly highlights the presence of high quality injectite reservoirs in Block 28/9 which, to date have all proven to be hydrocarbon bearing. This well also encountered deeper sands of Cromarty age (the principal reservoir in Catcher) although, as anticipated, they were not hydrocarbon bearing at the Varadero location. We now look forward to drilling at Burgman where we have targets in the Tay and Cromarty as well as the higher risk Jurassic Fulmar formation."
The equity in the Catcher joint venture partnership is as follows: EnCore Oil plc (15 percent, Operator), Premier Oil (35 percent), Wintershall (20 percent), Nautical Petroleum (15 percent) and Agora Oil & Gas (15 percent).