North Sea operator Serica Energy (LON: SQZ) spudded the North Eigg exploration well this morning.
At around 4.30am the Transocean Paul B. Loyd Jr. harsh environment semi-submersible rig began drilling the well 3/24c-NE1.
Serica operates the exploration well, targeting upper jurassic turbidite sands, similar to those encountered in the nearby Rhum field, with a 100% interest.
North and South Eigg lie in blocks Blocks 3/24c and 3/29c in the Northern North Sea.
If successful, it is anticipated that the reservoir will be gas filled and will be capable of providing energy to the UK domestic market for a decade from 2025.
According to Serica’s initial estimates, North Eigg could hold prospective resources of 60 million barrels of oil equivalent.
It is anticipated that a discovery at North Eigg would be developed utilising the company’s nearby 98% owned and operated infrastructure on the Bruce platform.
In order to get the project up and running, Serica could invest around £100 million in the development.
Results of the well are expected in mid-October.
Mr Flegg said: “This is an exciting exploration prospect located very close to Serica owned and operated infrastructure. In a success case, this means that any development could utilise the existing production facilities on the Bruce platform, thereby reducing the need for extensive investment in new facilities and reducing the carbon footprint of the development and subsequent production period.
“Our internal estimates indicate that the field could contain unrisked prospective resources (P50 recoverable) of 60 million barrels of oil equivalent. This is a 100% Serica project and so the benefits to the Company could be significant. Not only are the prospective resources valuable but we anticipate that the development could add significant life to the existing Bruce facilities.”
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