Hannon Westwood: UKCS Boasts 213 Planned Wells

UKCS consultancy Hannon Westwood released a report on future UKCS activity and forcasted investment opportunity. First issued mid-2006, the autumn 2007 UKCS Farm-In Report offers unique predictive insight into farm-in opportunities available in 213 E&A planned UKCS wells.

Monday's report reveals 83 exploration prospects through to 2010 offering short, medium and long-term farm-in investment, requiring a total of $1 billion per year over the next four years. The report is a useful tool for geo-scientists, explorers and business managers with crucial well and technical detail in order to build a farm-in strategy and budget for 2008 and beyond.

"UKCS farm-in activity today continues to be a fast-moving market," said Chris Bulley, executive director of Hannon Westwood. "The pool of 83 farm-in opportunities in today's and the previous 83 July 2007 report reflects perhaps the number of planned wells and level of investment that the industry can support."

The majority of the 83 wells expected to be partially or fully offered for farm-in funding are mainly offered by independents that are seeking to fully fund their portfolio of proposed wells.

As of late 2007 the majority of the 83 wells searching for farm-in investment are in the Central North Sea, followed by the Gas Basin. For comparison, the number of wells searching for farm-in funding has risen. In mid-2006 there were 50 wells, in early 2007 there were 74 wells, and in mid 2007 there were 82 wells. The report shows a decrease in the number of farm-in opportunities in the Gas Basin (Southern North Sea) since July 2007.

The geographic breakdown of current farm-in opportunities included eight for the Northern North Sea, 44 for Central North Sea, 21 for Southern North Sea, 7 for the West of Shetlands and 3 for the West of Britain.

"Since we first started reporting on farm-in opportunities, the Central North Sea has consistently delivered the most farm-in opportunities, signalling a continued drift towards an oil province and despite the continued uncertainty over gas prices a continuation in HPHT drilling," Bulley said. "This perhaps reflects as well a greater number of Promote licensees in the Central North Sea and also the amount of near-field drilling in the Gas Basin by stable long-term groups."