EnQuest revealed Friday that it has discovered oil at its 100 percent owned Eagle exploration well, located in the North Sea.
Preliminary analysis indicates that an oil bearing reservoir with a vertical thickness of 67 feet and “excellent reservoir properties” was encountered at the well, said EnQuest in a company statement. No oil water contact was encountered at Eagle, representing potential upside volumes on the flank of the structure, and initial analyses have seen the company anticipate gross total recoverable reserves to be of a similar size to those in the nearby Gadwall producing oil field.
Gadwall is part of the Greater Kittiwake Area and was successfully returned to production by EnQuest last year. It is estimated that total gross ultimate recovery from Gadwall will be approximately 6 million stock tank barrels of oil. EnQuest undertook the drilling of the Eagle exploration well in the second quarter of this year. Eagle was acquired along with EnQuest’s other interests in the Greater Kittiwake Area in 2014.
EnQuest also revealed that the drilling of the Scolty/Crathes development wells was completed ahead of schedule and under budget recently. The Scolty reservoir was on prognosis and the Crathes reservoir exceeded expectations, with a small reserves upgrade, according to the company.
“The initial results of the drilling of the nearby Eagle exploration well have confirmed a new discovery. Following last year’s production growth and unit operating cost reduction successes at GKA, this latest success demonstrates EnQuest’s ability to create value from maturing assets and from near field exploration opportunities,” he added.
Market reaction to EnQuest’s latest news was described as “positive” by FirstEnergy, although the oil and gas advisory firm said that it was carrying Eagle as a larger prospect with 20 million barrels of gross resources instead of 6 million barrels. FirstEnergy stated, however, that investors would most likely welcome news of the addition of a few million barrels of reserves.
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