VENTURE Production, said yesterday it had successfully tested a well to appraise the Cygnus gas field, and that it believed the southern North Sea field would be a core asset for many years.
The Aberdeen oil and gas operator, which has a 48.75% interest in the GDF Suez-operated field, said the well had confirmed the presence of gas in both primary and secondary targets, testing at a rate in one interval of 32million cubic feet per day and, as expected, at a low rate in the other.
It said likely reserves in the former were expected to be more than 100billion cu ft, the equivalent of 16.6million barrels of oil.
A further appraisal well to test another area in the north-eastern part of the field is due to be drilled following completion of this well.
Venture chief executive Mike Wagstaff said: “We are delighted with this appraisal well, which has gone a step further towards confirming our belief that the Cygnus field is one of the southern North Sea’s largest undeveloped gas fields with five areas having development potential.
“After acquiring our interests in the field last year, this result is testament to the strength of Venture’s business model and ability to acquire and rapidly exploit ‘stranded’ reservoirs such as Cygnus.”
The field lies in UKCS blocks 44/12a and 44/11a near to the Caister Murdoch System (CMS) area in the southern North Sea.
A development plan for the first phase of the field is in preparation with sanction expected this year and first gas in late 2010 or 2011.
Partners in the field are GDF Suez (38.75%) and Endeavour Energy (12.5%).
Venture acquired a 35% stake from Tullow Oil in April 2008 and a further 13.75% from E.ON Ruhrgas UK in October 2008.
Also purchased from Tullow at the same time were interests in the Humphrey, Kepler and Copernicus, Garnet, Opal and Boulton gas discoveries in the CMS area. Additional interests acquired from E.ON at the same time were in Humphrey, Kepler and Copernicus.