The Peak Group Develops Multi-Well Program for North Sea

The Peak Group has brought together two independent operators for a groundbreaking multi-well project in the North Sea.

The six-well project for Century Exploration (UK) Limited and Dana Petroleum in the central North Sea has been created by the Peak Group's well management division Peak Well Management. It is believed to be the first time a well project management company has established a shared program of activity for operators in the basin. The total contract value of the program is expected to be up to £30 million.

Peak has hired the Bredford Dolphin semisub from Dolphin Drilling for the project. Three wells will be drilled for each operator. Drilling commenced in July 2005 with completion of the six-well program anticipated in December.

The Peak Group will deliver a complete well project management service. This includes hire of the rig, detailed well and test design, tendering and contracting for all services, execution of the drilling program including materials and logistics, project completion and operations wrap-up.

Ian Burdis, operations director of Peak Well Management, said: "License operators on the UK Continental Shelf - many of them independent companies without fully-staffed, in-house UK engineering departments - are faced with planning and executing drilling programs at a time of equipment shortages and rapidly expanding rig rates. We have proved that there are significant advantages to be gained for companies joining collaborative drilling programs.

"The tightness of supply and the consequent high rig rates are forecast to remain until at least 2008. But participation in a multi-well, multi-operator program has been shown to be a cost-effective way of alleviating the problems of rig availability and price constraints.

"By taking advantage of Peak's multi-well programming, the bureaucratic process is minimised, logistical and manpower costs are shared and license operators can address their drilling objectives with increased confidence."

In 2005 Peak is managing approximately 20 exploration and development wells on behalf of a number of clients, making it the third busiest drilling operator on the UKCS. This operation involves four different drilling rigs operating from three different supply bases: Aberdeen, Great Yarmouth and Heysham. Drilling is being conducted in the Southern, Central and Northern sectors of the North Sea, as well as in the Irish Sea.