PanCanadian Updates Buzzard Results

PanCanadian Energy Corporation released results from the Buzzard 20/6-4 appraisal well, which recently completed drill-stem testing, on the Buzzard structure in the U.K. Central North Sea.

The 20/6-4 appraisal well, drilled using Dolphin Drilling's semisubmersible rig, Borgny Dolphin, flowed at aggregate rates of 11,100 barrels per day of light oil (4,000 barrels per day and 7,100 barrels per day from the two zones tested) and 2.2 million cubic feet per day of natural gas, on a 36/64th-inch choke. As was the case in the initial discovery well, flow rates were constrained by the capacity of surface testing equipment.

The Borgny Dolphin rig will now be used to drill a sidetrack to the 20/6-4 appraisal well. This sidetrack will test the extension of the Buzzard accumulation in block 20/1 of licence P928 (South). Interest holders in the P928 (South) license are PanCanadian Energy U.K. Ltd. (operator) with 35.29 percent; Intrepid Energy North Sea Ltd. (29.41 percent); BG Group (29.41 percent); and Edinburgh Oil & Gas PLC (5.88 percent).

The Stena Dee semisubmersible rig, having completed drilling operations on the 19/10-1 and 1Z wells, is currently drilling the 20/6-5 well, which is located two kilometers ENE of the 20/6-4 well. The primary purpose of this well is to identify the location of the oil/water contact in the central panel of the field and to undertake injectivity tests in the Buzzard aquifer. There are no plans to perform any drill-stem tests on this well. The Buzzard discovery well, 20/6-3, drilled in the summer of 2001 and located 100 kilometers northeast of Aberdeen, initially encountered more than 250 feet of hydrocarbon-bearing sandstone. During testing, the well flowed 6,547 barrels per day of light oil and 0.97 million cubic feet per day of natural gas on a 36/64th-inch choke.

The Buzzard discovery lies in PanCanadian-operated License P986, which was awarded to PanCanadian and its partners in the U.K. 18th Licensing Round in late 1998. PanCanadian holds a 45.01-percent interest in the license. Partners in the license are Intrepid Energy North Sea Ltd. (30.00 percent); BG Group (19.99 percent); and Edinburgh Oil & Gas PLC (5.00 percent).

PanCanadian is the largest net and gross acreage holder in the Buzzard-Ettrick area, with interests in seven blocks, six of which it operates, covering in excess of 250,000 acres, with working interests ranging between 20 percent and 77 percent.