UK DTI Announces Sixth UK Fallow Assets Release

The Department of Trade and Industry and its partners in PILOT published a new listing of Fallow Blocks and Discoveries.

This sixth release has added 67 new Fallow Blocks and 23 new Fallow Discoveries to the list. These Class B Fallow Blocks must have significant activity planned within one year of release or be relinquished.

For Fallow Discoveries, Licensees or a third party have two years from publication to come forward with plans for significant activity. Forty six Fallow Discoveries remain on the release list for a further year, bring the total number of Fallow Discoveries now on release to 69.

At the request of the UKOOA Exploration Members Representative Team, the DTI and the PILOT Fallow Workgroup have added notes for clarification to the original Fallow Process document.

Fallow Blocks

There are 67 Fallow B blocks publicized today, which must have significant plans for activity agreed by the Department by December 2005, or be relinquished by the end of December 2005. Four of these blocks are subdivided by the Licensees into subareas, making 71 areas in total.

A number of the blocks added to the release list today have producing fields or discoveries on the block, but it is the area outside of the field or discovery area that now needs significant activity, or the block will be relinquished back to the field or discovery area. Thirty two of the 67 total Fallow Blocks were licensed before the 5th Round.

There are 98 "Rescued Fallow Blocks" (4 of which are subdivided making 102 subareas in total), which have previously been released on our web site but now have a substantive work programme including a drill or drop decision agreed by the DTI. These groups may be looking for partners to complete their commitments.

Since the PILOT Fallow process began in 2002, 31 exploration or appraisal wells targeting prospects on fallow class B blocks have been drilled: 3/03-12, 3/03-N45, 3/09a-N49, 9/15b-4Z, 9/18a-33W, 13/29b-9, 14/20b-32, 15/27a-10, 15/30-12, 21/23b-7, 22/05b-A12, 22/12a-10, 22/17-2, 22/29-7, 22/30b-A8, 23/16b-9, 30/13-8, 30/14-2, 43/25a-2, 44/17b-7, 47/15a-7, 48/10a-12, 49/7a-3, 49/10a-4, 49/11a-9, 49/20b-5Z, 49/29a-10, 53/3a-7, 110/12b-5, 211/19a-M71 and 211/23a-A64Z.

As a result of this drilling, the Seymour (22/05b-A12) Field began producing condensate in March 2003. The Beryl "C" (9/18a-33W), Brechin (22/23a-7), and Annabel Saturn (48/10a-12) Fields are being developed. The Munro (44/17b-7), Amanda (49/11a-9) and Caravel (49/20b-5Z) wells have been announced as exploration successes, and the "Scoter N" (22/30b-8A) and "Flyndre" (30/14-2) wells have been announced as successful appraisals.

An additional 14 exploration or appraisal wells have been drilled on blocks which were reviewed with licensees as part of the Fallow process, but were classed as Fallow A (doing all that can be expected) or M (given a moratorium following a change of Operator). The wells are 14/18a-14, 15/13a-7Z, 16/13d-6, 16/28-17, 16/29a-13, 20/7a-4, 21/10-10, 22/01a-11, 22/23a-7, 30/19a-7, 30/6-4Z, 48/16b-2, 49/26-29, and 206/1a-4Z. Farragon (16/28-17), Maria (16/29a-13), and Laggan (206/1a-4Z) wells have been announced as successful appraisals.

Blocks with new exploration or appraisal wells are not fallow in the process for four years.

Since 2002, 153 fallow block subareas have been relinquished or are being relinquished.

Sixteen blocks were re-licensed in either the 20th or 21st rounds. In the 21st Round, 6 relinquished once Fallow blocks were awarded; 21/4b to Kerr McGee, 21/8 and 21/15b to Walter, 22/24c to Paladin, 29/12a to Maersk, and 30/1d to Veritas. In the 22nd Round, 10 relinquished once Fallow Blocks were awarded; 3/27a to Nautical, 9/18c to Storm, 20/10a to Century, 21/23a to Sterling, 22/22c and 23/26c to Veritas, 31/26b to Endeavour, 47/9c to Corsair, 49/29c to Ithaca, and 210/25e to Unilon.

Since 2002, 11 new proprietary seismic surveys have been acquired, making 17 fallow block subareas not fallow for two years from start of acquisition. 29 block subareas are now not fallow because field developments have been approved (Nuggets, Sycamore, Carrack, Calder, Darwin, Clair, Goldeneye, Braemar, Buzzard, Gadwall, Glenelg, Rose, Saturn, Horne, Wren and the Penguin Fields). The area surrounding these fields will become potentially class B one year after production begins.

Fallow Discoveries

There are 69 fallow B Discoveries on the listings publicized today, which include 46 that were previously released on the website. The 23 new Fallow Discoveries include 5 appraised discoveries, with more than one associated appraisal well as of 31st December 2003. There are only 10 more appraised discoveries that will be added into the Fallow Discoveries next year following further industry consultation. Subsequent discoveries with more than one associated appraisal well will be incorporated into the Fallow Discoveries process in the year that they become fallow.

There are 7 "Rescued Fallow Discoveries" which now have a substantive work programme agreed with the DTI. These are 16/22-1, 21/15a-2, 48/24a-1, 48/25a-4, 48/25b-5, 29/09a-5 and 49/18-5Z.

Thirty-eight undeveloped discoveries are not included in the process because they are now on open acreage, including 4/26-1A, 11/24-1, 11/24a-2Z, 12/21-3, 14/15-2, 15/07-1, 16/02b-4, 16/06b-6, 16/08c-13, 22/02-2, 22/08a-2, 22/22c-3Z, 28/02-1, 39/16-1, 42/10b-2Z, 42/13-2, 42/15a-2, 42/15b-1, 43/16-2, 43/17-2, 43/23-1, 43/26b-10, 44/28-3, 47/09b-4, 48/02-1, 48/02b-3, 48/07c-11, 48/08a-1, 110/04-1, 110/08a-5, 110/12a-1, 113/27-2, 204/28-1, 205/23-2, 210/25c-6A, 210/29a-3, 211/23b-11 and 214/30-1.

Twelve discoveries have had appraisal drilling, with wells 3/03-8, 13/26a-2, 15/30-2, 16/29a-11Y, 22/05b-3, 23/16b-1, 30/06-3Z, 30/14-1, 49/01-3, 49/8a-3, 49/10-1, and 211/19a-6. Field Development Plans on fallow discoveries have been approved for Arthur, Pict, Horne, Wren, Gadwall, Seymour and Playfair.

Further Information

Anyone interested in a particular asset should initially approach the named contact (normally the Operator), but may also approach partners to see if they are interested in a plan for significant activity, which can then be put to the DTI.

Company: U.K. Department of Trade & Industry more info
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