RWE Dea UK has finally started gas production from the Breagh gasfield located in the UK Southern North Sea.
The first three wells brought into production had an initial total flow rate of 2.75million cu.m of gas per day.
Total reserves of the Breagh field are estimated at some 19.8billion cu.m (700billion cu.ft), which makes it one of the largest gas finds of recent times.
Breagh is one of the largest natural gas discoveries under development in the UK sector of the southern North Sea and the largest RWE Dea-operated field development in the UK.
The company has a 70% stake in the licence while the balance is held by Toronto-listed but Aberdeen-headquartered Sterling.
Breagh is hugely important to both companies and especially Sterling, which had to endure significant pain due to costly delays in bringing the field onstream.
A relieved chief operating officer, John Rapach, said yesterday: “Breagh is one of the largest natural gas discoveries under development in thesouthern North Sea and is the first large-scale production for Sterling.”
Interim CEO Jake Ulrich said: “This is a transformational event for the company and we now look forward to using Breagh’s cash flow to accelerate value realisation.”
As for RWE Dea, its CEO Thomas Rappuhn said: “Breagh is very important in the context of achieving our company’s growth targets as this field will make a major contribution towards boosting RWE Dea’s gas production.”
Sterling was awarded the licences at Breagh as operator on a 100% basis during the UK’s 22nd Seaward Licensing Round of 2004.
The field was in fact discovered in July 1997 when it was well 42/13-2. The well encountered a 121m gas column, demonstrating the presence of hydrocarbons.
BP had earlier drilled a well, 42/13-1, in 1968, which was declared commercially non-viable.
Despite the qualified success, the acreage was relinquished, later coming under Sterling control.
The company furthered the appraisal of the field drilling wells in 2007 and 2008, and undertook scoping work for the development.
It was during 2009, RWE Dea UK acquired its current 70% interest with a view to developing Breagh, together with other potential gas targets in the area.
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