Nexen said yesterday it had made the largest oil find in the UK North Sea since the giant Buzzard field was discovered in 2001.
Canada’s fourth largest oil and gas operator said the Golden Eagle area, based on data from three exploration wells, nine appraisal wells, and other tests following the Golden Eagle discovery in 2007, was now estimated to contain between 150 and 275million barrels of oil equivalent (boe) of potential recoverable reserves.
Buzzard, in which Nexen acquired a 43.2% interest and operatorship from fellow Canadian company EnCana in 2004, has recoverable reserves estimated at 500million boe.
The company said the area included Nexen’s 34% operated interest in both the Golden Eagle and Hobby discoveries and its 46% operated interest in the Pink find.
It added that it expected to continue appraisal drilling in the area for the remainder of the year and was evaluating development options as it moved towards project sanction. Nexen chief executive Marvin Romanow said: “The Golden Eagle area is shaping up to be a significant development.
“Not only are the economics attractive at oil prices as low as $40 a barrel but with Buzzard producing at peak rates for the next five years or so, this development allows us to keep growing our presence in the North Sea.”
Nexen also said yesterday that in the Scott/Telford development area, it had completed drilling a new step-out development well which encountered 254 feet of high-quality net oil pay.
The well is to be tied into Nexen’s Scott platform and is expected to add production of about 10,000-15,000boe per day for the company by the year-end.
Nexen has a 72% operated interest in the field.
The group said that the Ettrick field, which began producing in the middle of last month at an initial rate of 20,000boe per day, had since then been producing at up to 30,000boe daily.
It added that it also had a nearby discovery at Blackbird which could be a future tie-back to Ettrick, further enhancing the economics of the development.
Nexen operates both Ettrick and Blackbird, with a 79.73% interest in each.
The company said that at Buzzard, a four-week shutdown was under way for jacket installation and tie-in preparation relating to a fourth platform, which would allow the handling of higher levels of hydrogen sulphide over the life of the field.
Nexen said work was proceeding as planned and the platform jacket was installed successfully earlier this week. The field is expected to be back on stream by the middle of this month.