Canadian Overseas Petroleum (COP) said yesterday drill-stem testing on the North Sea Esperanza prospect had confirmed it as a “promising discovery”.
The firm said poor weather meant the well test had to be stopped before a maximum flow rate was achieved, but that no water or sand was found.
Analysis also showed that in addition to 52ft of net pay in the uppermost Forties sandstone, there was an additional 30ft of potential pay extension.
Former Oilexco president Arthur Millholland, now president and chief executive of COP, said: “The drill-stem test confirms that Esperanza is a promising oil discovery…and we look forward to discussing the next steps for Esperanza with the operator (BG Group).”
COP said once the drilling vessel was released from the site, it would have 120 days to exercise a right to buy a 50% interest in the entire block from operator BG Group, which includes the Banks discovery, for US$15 million.