Expectations are rising that the Cladhan find in the northern North Sea will be one of the biggest discoveries in the basin in years.
Canada-based Sterling Resources yesterday announced another successful appraisal well at the discovery.
An oil column of more than 1,200 feet has been found.
Chief executive Mike Azancot would not be specific about how much oil Cladhan might hold, but he added: “It’s early days yet, but with every well we have drilled the field continues to get larger.”
The Press and Journal reported last October that the find could hold more than 300million barrels of oil.
Mr Azancot, who has an office in Banchory employing 45 people, said only four wells to date have been drilled on Cladhan – the initial discovery well at the end of 2008 and three recent appraisal wells.
He said a further two appraisal wells were expected to be drilled by this summer, and another two could follow.
As a result, there might be a clearer position regarding field reserves by the end of this year.
Mr Azancot said Cladhan was already a commercial discovery and he was very excited at its potential.
He said the field could come on stream in 2014.
A variety of development choices include a subsea tieback to another installation in the area, a floating production vessel or even a platform.
Mr Azancot said the recent £10billion North Sea tax grab by Chancellor George Osborne was not welcome, though it would not affect Sterling in the short term.
He added: “We have more than £200million of expenditure to offset against tax, so the tax change will not affect us like it will some firms.
“I doubt if the tax increase will affect our development plans for Cladhan, but it will affect the economics of the field.”
Sterling is the operator of Cladhan with 39.9%. The other partners are: EnCore Oil (16.6%), Wintershall UK North Sea (33.5%) and Dyas UK (10%).
Andrew Reid, Aberdeen-based managing director of energy consultant Douglas-Westwood, said yesterday’s Cladhan announcement was another piece of positive news for the UK continental shelf.
He added: “On the back of a number of recent exploration successes from a number of operators in recent months, the news that the appraisal well on the Cladhan field continues to find oil-bearing columns is encouraging.
“While there is limited information available at this point, preliminary analysis suggest a potential discovery of at least 100-200million barrels.
“As the exploration programme continues more certainty will be available, although indications are that the discovery may be larger.”