Neptune Energy holds course to spud the high-impact Isabella appraisal well in the UK North Sea second half of 2022.
Announcing its full year results on Thursday, the gas-focused independent reported pre-tax profits of $1.4 billion (£1.1bn) for 2021, amid a “strong operating environment”.
In addition, Neptune reaffirmed that the Isabella appraisal well would be spudded in the second half of the year, having previously described it as “one of the most exciting prospects in the UK’s Central North Sea.”
It lies on Licence P1820, in the central North Sea, about 25 miles south of TotalEnergies’ Elgin-Franklin Field, and 105 miles east of Aberdeen.
Neptune holds a 50% non-operated stake in the prospect, alongside operator TotalEnergies (30%), Ithaca Energy (10%), and Euroil Exploration (10%).
If drilling proceeds as planned results from the well would be due in mid-2023, which will support commercial decisions on what Neptune again called “a potentially significant future development.”
Spudded in 2019 by the Noble Sam Hartley, the initial well was drilled to a total depth of 5,557m in water depths of 80m. It encountered 210 ft of net pay of lean gas and condensate and high-quality light oil in Upper Jurassic and Triassic sandstone reservoirs
Neptune said in March 2020 that it was “encouraged” by the discovery – a sentiment echoed by TotalEnergies.
At the time, Glenn Morrall of Wood Mackenzie’s upstream research team, said the find would strengthen the latter’s position at the top of the “table of net UK discovered resources in recent years” – though estimates of key finds such as Glendronach and Glengorm have since disappointed.
He added: “Isabella’s high-pressure/high-temperature (HP/HT) nature will add complexity and cost to any development, and its progression is likely to be put on the backburner at current prices.
“But given the abundance of nearby infrastructure, the discovery could be commercial should we see a pick-up in sentiment – some HP/HT fields around the world are commercial at as little as 15 million barrels of oil equivalent.