Junior energy firm Enegi Oil sees the downturn in activity on the UK Continental Shelf (UKCS) as an opportunity for it to exploit its "marginal field initiative" in the region, the company said Wednesday.
In statement accompanying the firm's results for the year to June 30, Enegi Chairman Alan Minty said:
"A new regulator in the North Sea charged with encouraging asset development, a downturn in activity in the UKCS shown by a reduction in drilling commitments in the 28th Licensing Round, as well as a reduction in current drilling activity and even the reduction in oil price, show that the business model is appropriate and timely.
"More fields are becoming marginal and marginal fields need to be developed to support the overall production rate in the UKCS and other jurisdictions. The solutions that we offer provide a way to develop those marginal fields through the overall reduction in [capital spending], and the adoption of the resultant operating and engineering philosophies provide a significant reduction on [operational expenditure]."
Minty noted that the planned submissions date for the field development plan for the UK North Sea's Fyne field was not met during the year, but that he retained "a high degree of confidence" that Enegi has the technical solution that will allow the project to develop.
Enegi is working with its partners ABTechnology and Wood Group PSN to develop a Self Installing Floating Tower (SIFT) development solution. The company said that the work so far carried out on plans for the Fyne development "has considerably advanced" the engineering of the SIFT solution, providing a deeper understanding of its potential applications on the UKCS and beyond.
Fyne is an extensively-appraised oilfield that has estimated 2P reserves of 9.9 million barrels with an API gravity of 25 degrees. So far, five wells have been successfully drilled on the field that have delivered free flow test rates of up to 4,000 barrels of oil per day.
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