Gas firm Cornerstone Resources, backed by the former CEOs of IOG and Ithaca Energy, is targeting a “massive opportunity” in the southern North Sea as it solidifies its position in the region.
The company’s chief executive Peter Young says the firm is in the basin for the long haul and looking to continue expanding its portfolio of developments.
In line with its ambition, Cornerstone has completed the acquisition of a handful of assets from Painted Wolf Resources.
Among them are Block 47/3f in offshore licence P2433, which contains the Baker prospect and lies to the north of blocks already owned by the Aberdeen-based company.
Abbey
Baker is part of the low risk Carnaby prospect and a small extension of Abbey, the firm’s flagship discovery.
Cornerstone is currently progressing Abbey and is “very close” to submitting a field development plan (FDP) for the project, with plans to bring it on stream in 2024.
A concept select report for the three-well scheme has already been lodged with the North Sea Transition Authority (NSTA).
Under the current proposals, the discovery will be a subsea development and benefits from being “surrounded by infrastructure”.
© Supplied by CornerstoneMr Young said: “There are several obvious routes to market for us. We haven’t announced where we are going with the gas, but we’re particularly advanced with one of those parties.
“It will consist of three subsea wells, tied back by quite a short a pipeline to the host facility.”
Work ramping up
Talks are already ongoing to secure a rig to drill the wells on Abbey, which has audited proven and probable reserves of 111 billion standard cubic feet (bscf) of sales gas and 0.6 million barrels (MMbbl) of condensate
And Mr Young says they are at “advanced stages” of negotiations.
A raft of other announcements are also coming down the road as Cornerstone forges ahead with its southern North Sea ambitions.
Mr Young said: “The rig contract is progressing, we’re going to be announcing a pipeline operator, a well operator, a party that’s going to be the subsea engineering and installation provider for us. Long term, there is also a gas offtake agreement.
“We’ll be publishing a concept select report in due course. There’s quite a bit going on at the moment and the development plan is at an advanced stage.”
A wealth of experience
Launched in 2017 by Mr Young, founder of North Sea operator IOG (LON: IOG), Cornerstone boasts a wealth of experience amongst it ranks.
© Supplied by CornerstoneJohn McMurtrie, the company’s chief financial officer, has over 20 years’ in oil and gas under his belt, and has previously worked for IOG, EnQuest (LON: ENQ) and Jadestone.
Former Ithaca Energy CEO Iain McKendrick, who also held senior roles at TotalEnergies, sits on the company’s board as a non-executive director.
In its early stages, Mr Young footed the money to get Cornerstone off the ground.
As it grew, some team members started funding the company with “hard cash as well as some deferrals of their commitments”, and in the last year some larger funds have entered the fold.
Mr Young said: “The opportunities now are similar in some respects to when I founded IOG, more than a decade ago now.
“There are a lot of licenses to come up in the next round, but obviously the UK requirement for more domestic gas has only increased.
“The price of gas has also increased very sharply as well, so if that persists, then the economics will be stronger to go right after getting the best development.”