Ithaca Energy (LON: ITH) has confirmed the presence of hydrocarbons at its K2 prospect in the Central North Sea.
In an update issued on Thursday morning the North Sea operator reported “encouraging well results” from the field, located in Block 22/14c.
Drilling at K2, in water depth of about 90 metres, got underway in June using the Stena Spey rig.
Upon entering the reservoir, London-listed Ithaca discovered that hydrocarbons were present in the Forties member sandstones, with 45 feet of net thickness.
Logs were acquired to establish reservoir quality, and further analysis of the well results will feed into future activity and the recoverable resources estimate.
An appraisal sidetrack at the prospect will now be drilled.
Ithaca holds a 50% working interest in the licence, with the remaining half held by Dana Petroleum.
According to independent estimates from advisory firm Envoi, K2 has estimated resource potential of 102 million barrels of oil equivalent, via numerous geological targets on the block.
© Supplied by Wullie Marr/ DC ThomAlan Bruce, Itahca’s chief executive, commented: “I am delighted to report encouraging well results at K2, located in close proximity to existing infrastructure, further enhancing our portfolio.”
Montrose a tie back option
Mr Bruce has previously described K2 as a “value-adding near-term development”, alongside its enhanced recovery project at the Captain field and infill drilling at its Alba field.
Ithaca acquired its stake in K2, previously named a well to watch by Wood Mackenzie, as part of a deal for Summit Exploration and Production.
© Supplied by Repsol ResourcesK2 lies south-west of the Everest gas field and north-west of the Huntington oil field in the Central North Sea.
In a post online, research group Welligence Energy Analytics said: “Commerciality has yet to be established, however, the Repsol-operated Montrose hub, 25km southwest, is arguably the most likely tie-back host given Ithaca’s interest in both K2 and the hub. Ongoing drilling at the hub is expected to keep the facility open into the 2030s. Should volumes in K2 prove to be too small to stand alone, development speed will be of the essence in order to maximise recovery prior to the cessation of Montrose.”