Analysts have named Parkmead Group’s (AIM: PMG) Skerryvore as the UK North Sea well to watch this year.
Westwood Global and Wood Mackenzie have marked it as the most prospective exploration well going in 2024, and the only one considered “high impact”.
Parkmead is targeting 155 million barrels of oil equivalent of pre-drill resource from the project.
Drilling is expected to take place in Q4 of this year with opportunity “for a number of low-cost tie-back options”.
When the project was approved in 2022, Parkmead pointed nearby activity on Harbour Energy’s Talbot, Neo Energy’s Affleck project, and work at ConocoPhillips’ Tommeliten A, which sits close to Skerryvore over in the Norwegian sector.
Parkmead is operator with a 50% stake, partnered with Serica Energy (20%) and CalEnergy Limited (30%).
Eight wells targeted in 2024
“UK E&A activity is expected to be maintained in 2024,” said Westwood Global, which is targeting total pre-drill resources of 325 million barrels of oil equivalent.
“All wells are infrastructure-led exploration (ILX), with one well also considered high impact at Skerryvore, targeting pre-drill resources of 155 mmboe. There are 13 companies expected to participate in E&A drilling in 2024, with NEO Energy and Harbour Energy being the most active.”
Aside from Skerryvore, Wood Mackenzie said Shell’s Selene exploration target and its Pensacola appraisal were cited among the “wells to watch”.
The Valaris 123 rig has been booked to drill both wells, which sit in the Southern North Sea.
Selene
Shell’s Selene has been billed by partner Deltic Energy as “one of the largest unappraised structures” in the Southern North Sea.
Due to kick off drilling in Q3, Selene is targeting gross P50 prospective resources of 318 billion cubic feet of gas, with a 70% geological chance of success.
Operator Shell (50%) is partnered with Deltic Energy (25%), who built up the prospect, and Dana Petroleum, which farmed in 25% earlier this month.
Deltic has said Selene is a “strategic asset located close (to) infrastructure” for tie-back options.
Pensacola
Considered generational when it was confirmed as a discovery last year, Shell took a well investment decision on the Pensacola appraisal in December.
The Southern North Sea find has best-case estimated resources of 342 million barrels of oil equivalent after an upgrade last summer.
Expected to be drilled in Q3, the appraisal will seek to firm up those numbers.
Shell owns 70% of the licence, partnered with Deltic (30%).
The partners have previously said that, in a mid or high case, Pensacola would have a new pipeline to the Teesside Gas Plant installed.
In the lower-end of estimates then it would likely be tied-back to the Ineos Breagh platform.
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