There were positive updates yesterday on the development of two significant North Sea finds – Golden Eagle and Catcher.
Nexen said it was assessing options for the Golden Eagle area north of Fraserburgh.
The Canadian company described the location as a “significant” development opportunity.
It said in its second-quarter results: “Our current estimate of recoverable contingent resource is 150million barrels of oil equivalent (boe) or higher – more than 55million boe net to us.
“We are in the process of completing the acquisition of additional acreage in the area and plan to drill an exploration well here later this year. Golden Eagle area development supports standalone facilities and is economic with oil prices significantly lower than they are currently.
“We are assessing development options for the area and will select an appropriate configuration for sanctioning in 2011.”
Elsewhere in the North Sea, Nexen said there were a number of opportunities to add reserves at the giant Buzzard field discovered in 2001.
The firm said: “In the northern part of the field, we are seeing more oil above the water contact which will lead to more recoverable oil. In the south, we plan to drill Bluebell, a possible extension of the Buzzard field. At Polecat, a previous discovery east of Buzzard, we plan to drill an appraisal well which could be tied back to the Buzzard platform.”
West of Shetland, Nexen is finalising plans to drill the North Uist prospect.
The company has a 35% non-operated working interest in the find and expects to drill the well later this year.
Nexen added: “This prospect has a target size much larger than typical North Sea targets.”
Meanwhile, Premier Oil said yesterday that the Catcher discovery in the UK central North Sea would move rapidly into development.
Catcher has previously been hailed by analysts as a potentially world-class discovery. Premier said in a trading and operations update yesterday that it currently estimated recoverable reserves of between 60million to 100million barrels of oil for the area drilled to date, with significant untested potential.
It added: “Further exploration and appraisal drilling on the block has now been added to the 2010 programme, subject to rig availability.”
Equity in the Catcher joint venture partnership is held by EnCore Oil (15% and operator), Premier (35%), Wintershall UK (20%), Nautical Petroleum (15%) and Agora Oil & Gas (15%). EnCore’s initial analysis indicated the Catcher area may contain up to 300million barrels of oil.