Under the terms of the agreement, Oil Quest will pay to Sterling 7.5 percent of the costs to target depth of two planned wells.
Two prospects, Kirkleatham and Westerdale, within license PEDL 068 are planned to be drilled by the Operator, Egdon Resources Plc, during December 2005 and January 2006. Previous wells, drilled down-dip on both prospects, encountered gas.
The Cleveland Basin contains seven fields with approximately 60bcf of gas reserves. The producing fields include Kirby Misperton, Malton, Marishes and Pickering and gas accumulations at Locton, Caythorpe and Eskdale. The main reservoirs for gas are the Zechstein carbonates. Secondary reservoir potential occurs in the Permian Rotliegendes sandstone and the Carboniferous sandstones. Traps are structural, typically in faulted anticlines where associated fractures allow better reservoir productivity to be achieved.
Technical Overview of Kirkleatham and Westerdale Prospects
The Kirkleatham prospect is prospective for gas in the Zechstein carbonates in a structural trap. The structure is a broad low relief dip closed feature closed to the east by faulting. Faults are seen on the seismic which affect the Zechstein and which may give rise to increased fracturing in the formation. The presence of fractures in the carbonates can greatly enhance the productivity of the wells. The presence of gas shows in two wells Kirkleatham-1 and 2 drilled on the edge of the structure demonstrates a valid trap containing gas. The gas source is believed to be from Carboniferous Westphalian coal measures. The trap is sealed by the overlying evaporates within the Zechstein. Porosity in the carbonates is variable improving where oolites or fossil debris are present. Fractures greatly improve permeability in the reservoir allowing the otherwise patchy porosity to connect effectively. A secondary target for this well is the Rotliegendes sandstone which had oil shows in Kirkleatham-1 and 2.
The Westerdale prospect is prospective for gas in the Zechstein carbonate in a structural trap. The structure is a broad anticline formed during basin inversion. It is dip closed north, south and east and fault closed to the west. The feature is a complex anticline with faulting affecting the potential reservoir section. This feature was tested by the Ralph Cross-1 well which tested gas from the Zechstein at rates up to 6 mmscfg/d. Subsequent reinterpretation using additional seismic not available at the time the well was drilled, shows the well to be on the south-west flank of a structure which lies to the north of the well. The presence of gas in a valid trap is shown by the Ralph Cross well. A secondary objective occurs in Carboniferous sandstones at this location.
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