EnQuest’s Eagle oil discovery in the Greater Kittiwake area (GKA) in the North Sea is getting some heat from Dana Petroleum, after the company said that EnQuest did not have the authority to drill the well.
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Image from EnQuest. |
“Prior to EnQuest proceeding to drill the Eagle exploration well, Dana had asserted to EnQuest that EnQuest did not have authority to do so,” Dana Petroleum said in a statement on 4 July. “It remains Dana's position that it has a 50% ownership interest in the Eagle well discovery and it has reserved its rights under the relevant licence, under the joint operating agreement and at law.”
“The company looks forward to the further evaluation of the Eagle results in due course,” Dana Petroleum concluded.
In EnQuest’s announcement of the oil discovery last week, the company said in Q2, EnQuest undertook the drilling of an Eagle exploration well on a 100% working interest basis, and that Eagle was acquired along with EnQuest’s other interests in GKA in February 2014.
However, according to EnQuest's website, both EnQuest Heather Ltd. and Dana Petroleum (E&P) Ltd., hold 50% stake in GKA.
EnQuest said the initial results from Eagle were encouraging, leading the company to anticipate gross total recoverable reserves to be a similar size to those in the nearby Gadwall producing oil field. Gadwall is part of the GKA, which was successfully returned to production by EnQuest in H2 2015, and has an estimated recovery of some 6 MMstb.
On 1 July, the UK independent confirmed that further evaluation of the Eagle results is ongoing.
“I am now also pleased to confirm that the initial results of the drilling of the nearby Eagle exploration well have confirmed a new discovery. Following last year's production growth and unit operating cost reduction successes at GKA, this latest success demonstrates EnQuest's ability to create value from maturing assets and from near field exploration opportunities," Neil McCulloch, EnQuest president, North Sea said last week.
The Greater Kittiwake Area is located in UKCS blocks 21/12a (licence P.073), 21/12d (P.1786), 21/17a (P.1415), 21/17c (P.1415), 21/18a (P.351) and 21/19 (P.238). GKA includes the Kittiwake, Mallard, Gadwall, Goosander and Grouse fields, which have been developed as subsea tie-backs to a steel platform located at Kittiwake.
The Kittiwake field was discovered in 1981 and developed with a fixed steel jack platform. Production began in 1990, and reached a peak of almost 40,000 boe/d in 1994.
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