Silverstone Energy Makes Promising North Sea Gas Discovery

Silverstone Energy Limited

Silverstone Energy Limited says it has made a promising gas discovery in its 49/21–10A Vulcan East exploration well.

The Vulcan East well discovered an accumulation separate from the adjacent Vulcan Field. The discovery is estimated to contain between 150 and 200 billion cubic feet of gas* in place in a 345 foot gas column.

The well was drilled safely, on schedule and on budget and reached total depth of 8125 feet measured depth. Following evaluation of the Permian Rotliegendes sandstone reservoir, the well was suspended for possible future re-use as a development well.

Silverstone and partners, ConocoPhillips and BP, are reviewing the well results and other technical and commercial information to determine the viability of bringing the Southern North Sea field onto production.

Silverstone Chief Operating Officer, Steve Horton, said: ''We are very pleased with the results of the Vulcan East well. Operating experience gained on our Vanquish discovery well drilled earlier this year was put to good effect in the drilling of Vulcan East.

"Silverstone has a portfolio of similar prospects in the area and we will be drilling our third well later this month. The next well will be located on the Lx prospect in block 49/17."

Silverstone was formed 18 months ago as a joint venture between the specialist energy focused private equity fund, Lime Rock Partners, and Calgary based independent oil and gas company, Storm Ventures International Inc.

A farm-in agreement with ConocoPhillips and BP covers a selection of exploration opportunities in blocks 49/12a, 49/16, 49/17, 48/20b, 48/25b and 49/21 in the vicinity of the prolific V Fields and Viking areas.

The company plans to continue to invest in exploration drilling in the next year, and has identified several other targets in the farm-in area and in its licensed acreage, with further wells expected to be drilled in 2007 and beyond.