The Steam Oil Production Company is set to acquire 100% interest in of one Enquest’s North Sea licences.
The deal for licence P1996, which is subject to the Oil and Gas Authority’s approval, is made up of blocks 28/2b and 28/3b, which cover the Elke and Narwhal discoveries.
A Steam Oil spokesperson said development of the licence had the potential to be “one of the most significant North Sea developments in the coming decade”.
The spokesperson added: “We envisage developing the Elke and Narwhal fields as part of a wider Western Platform Steam Flood project centred on the Pilot field in Licence P2244 and The Steam Oil Production Company intends to create an integrated development concept to exploit this substantial resources base.
“Based upon our preliminary thermal reservoir simulation work we expect that we will be able to recover over 250 mmbbls of oil from these fields using a steam flood approach.
“We refer to the potential project as the Western Platform Steam Flood and we believe it has the potential to be one of the most significant North Sea developments in the coming decade.”
The Narwhal field was discovered by well 28/2-1, which was drilled by Arco in 1993. The Narwhal field has an estimated oil in place of around 41 mmbbls.
The Elke field was discovered by well 28/3-1B which was drilled by Murphy in 2000. The Elke field has an oil in place of about 185 mmbbls.
According to Steam Oil, “there are a number of low risk Tay sand prospects within the licence area with estimated prospective resources of oil in place of just over 100 mmbbls”.
The firm also estimates that a further Jurassic prospect which could contain just under 100 mmbbls of oil in place.
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