Parkmead increases stake in Perth and Dolphin oil fields to 100% and signs agreement with Nexen Petroleum to study potential tie-back
Parkmead, the UK and Netherlands-focused independent energy group, is delighted to announce it has significantly increased its equity in the Perth and Dolphin oil fields in the UK Central North Sea. The Perth and Dolphin fields lie at the core of Parkmead’s Greater Perth Area (“GPA”) oil hub project. The Group has increased its equity in these licences from 60.05% to 100%.
The Company has also signed an agreement with Nexen Petroleum, a subsidiary of the China National Offshore Oil Corporation (CNOOC), to conduct a detailed engineering study in relation to the potential subsea tie-back of the Greater Perth Area project to the Nexen operated Scott platform and associated facilities in the UK Central North Sea. The Scott facilities lie just some 10km southeast of Parkmead’s GPA project.
In addition, Parkmead has commissioned a new reservoir study with AGR Tracs International in relation to well stimulation, which could lead to increasing oil flow rates and oil reserves recovery from the two fields by analysing the effect of fracture stimulation on the reservoir.
The Perth and Dolphin fields are located across Blocks 15/21a, b, c and f & 14/25a in Licences P.218, P.588 and P.2154. Parkmead has increased its equity in these licences from 60.05% to 100%, which has driven a 63% increase in Parkmead’s 2P reserves from 28.4 MMBoe to 46.3 MMBoe.
The Scott field lies approximately 10km southeast of Perth and is operated by Nexen. A tie-back of the GPA project to the Scott facilities could yield a number of mutually beneficial advantages for both the Scott partnership and Parkmead. Utilisation of this export route has the potential to transform the GPA project commercially and economically, dramatically reducing the capital expenditure required to bring the GPA project onstream and operating costs thereafter.
The study with Nexen will specifically be looking at the detailed engineering of the tie-back, including topside modifications and processing at Scott, as well as caisson design work. Subsea 7 and Ingen (a subsidiary of Amec Foster Wheeler) will be providing additional technical expertise during the study.
Parkmead has also commissioned a new reservoir study with AGR Tracs International in relation to well stimulation. The outcome of this study could substantially increase the predicted recovery factor of the two fields by analysing the effect of fracture stimulation on the reservoir. The Perth field benefits from having a very large volume of oil-in-place, which stands at 197 MMBbls for core Perth, and 498 MMBbls when including the northern areas of the field. The Perth reservoir has a gross oil column of c.2,000 feet, making the reservoir ideal for fracture stimulation.
Perth and Dolphin are located in the Moray Firth area of the UK Central North Sea, which contains very large oil fields such as Piper, Claymore and Tartan. Through a series of licensing round successes and strategic acquisitions, Parkmead has established a key position in this area of the North Sea. Perth and Dolphin are two substantial Upper Jurassic Claymore sandstone accumulations that have tested 32-38° API oil at production rates of up to 6,000 bopd per well. At Perth, the Claymore Sandstone forms a combined structural-stratigraphic trap, onlapping the Tartan Ridge to the North, with a southward-thickening and dipping sandstone wedge. The sandstones that comprise the accumulation were deposited as deep-water turbidites sourced from the Halibut Horst, with a minor contribution from the Tartan Ridge.
Parkmead made a number of important growth steps during 2017 in relation to the GPA project. An invitation to tender was announced to the service provider market, covering the pre-FEED, FEED and subsequent development phases of the project. Parkmead was pleased to report that 13 alliance submissions were received, comprising 35 companies, across all project components of drilling, subsea construction and export route options. After evaluating the proposals, Parkmead is holding onward discussions with a number of leading, internationally renowned service companies.
The majority of the proposals have focused on innovative approaches to the potential development, with significant new work carried out on well planning, timeline to production and financing. A number of the proposals have also offered finance to the Group for major parts of the development, further reducing the capital expenditure required to bring the project onstream.
Tom Cross, Executive Chairman, commented:
“We are delighted with the significant progress we have achieved with the Greater Perth Area project. By increasing our stake in the Perth and Dolphin oil fields, Parkmead’s oil and gas reserves grow by some 63%.
The study with Nexen will examine one path to potentially unlock the substantial value of the GPA project for the benefit of the UK and Parkmead shareholders, as well as providing further value for the existing infrastructure partners.”
The Parkmead Group plc +44 (0) 1224 622200
Tom Cross (Executive Chairman)
Ryan Stroulger (Chief Financial Officer)
Panmure Gordon (UK) Limited (Financial Adviser, NOMAD and Corporate Broker to Parkmead) +44 (0) 20 7886 2500
Instinctif Partners Limited (PR Adviser to Parkmead)+44 (0) 20 7457 2020
This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
Notes to Editors:
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