Premier Oil’s first exploration well in its 2.1 billion bbl 2015 Falkland’s drilling campaign has confirmed the extension of the giant Sea Lion discovery.
The 14/15b-5 Zebedee exploration well, using the Eirik Raude semisubmersible drilling rig, was targeting 61-432 MMbbl gross unrisked resources, according to a recent Premier Oil investor presentation. The well intersected 79ft of oil bearing reservoir in Zebedee sands and 55ft of gas bearing reservoir in previously undrilled Hector sands, in multiple Cretaceous formations.
Samuel Moody, CEO of Rockhopper Exploration, which made the Sea Lion discovery, said the drilling results extend the Sea Lion play fairway further south, adding further resource for future developments in the area.
The finds in PL004, which also include oil shows in deeper sands, mark a successful start to Premier’s 2015 Falklands drilling campaign, ahead of the next well, the high-impact, higher risk North Falklands basin Isobel prospect, containing 55-933 MMbbl gross unrisked resources, according the investor presentation. The rig will then move to the South Falkland basin to drill Noble’s Humpback prospect.
Drilling in the Falklands, a self-governing British overseas territory contested by Argentina, which calls the islands the Malvinas, started in 1998, when, at $10/bbl five discoveries, from a six-well campaign, were declared uncommercial.
Rockhopper Exploration discovered Sea Lion in Spring 2010, marking the first commercial oil discovery in the North Falkland basin. It farmed out to Premier Oil in 2012.
The 14/15b-5 Zebedee exploration well is the first of six wells due to be drilled in the Falklands in a campaign using the Eirik Raude, crossing the North and South Falkland basins, under a rig sharing agreement with fellow Falklands explorer Noble Energy. Rockhopper has said the North Falkland wells are expected to cost around US$50 million each.
Zebedee
As well as the oil and gas in the Hector and Zebedee sands, oil was also encountered in a 5m deep sand (2.5m of net oil pay) below the Hector sands, which Premier’s partner Falkland Oil & Gas (FOGL) says may be a southern extension of the Beverley sand encountered in the 14/15b-4 well. In addition, a 3m sand lying below the Zebedee sand, containing good oil shows, is thought to be the southerly extension of the Sea Lion Main sand.
Pressure measurements taken in the Zebedee interval also show the same gradient as those in the oil leg of the Sea Lion field, suggesting that the Zebedee reservoir is in pressure communication with, and has the same oil-water contact as Sea Lion, adds FOGL. Oil shows were also recorded in deeper Cretaceous targets, but the sands were not well developed.
"This is a fantastic start to the 2015 Falklands drilling campaign and provides early proof of the significant remaining potential of the North Falkland basin," says Moody. In addition to the new discoveries at Zebedee and Hector, we have good oil shows throughout the deeper F3 section, which is encouraging should better quality reservoir be encountered in this section elsewhere in the basin.
“Having retained the sub-surface lead for North Falkland basin exploration in the farm out to Premier in 2012, I am delighted to report that our exploration team now enjoys a success rate of eight out of 10 wells in licenses PL004 and PL0032. We now look forward to drilling the higher risk Isobel prospect before the rig moves to drill in the South Falkland basin."
Andrew Lodge, Exploration Director commented: “The discoveries in the Hector and Zebedee fans extend the play fairway further south from Sea Lion and the satellites. They will add further resource to future phases of development in the area. We now look forward to the results of the upcoming Isobel Deep well, potentially the highest impact well in this campaign.”
The Zebedee well will now be plugged and abandoned and the Eirik Raude rig will move to drill the first exploration test on the Elaine/Isobel fan complex in the southern part of the North Falkland Basin with the Isobel Deep well. In total, Premier’s campaign is targeting 2.1 billion bbl, the firm has said.
The remaining wells due to be drilled are:
Sea Lion
In January, Premier Oil said it continues to work on a lower cost solution for the first phase of the Sea Lion project. Premier, which was initially assessing use of a large FPSO for the development, then opted for a tension leg platform, is now assessing the smaller FPSO design options.
According to a March investor presentation, the Phase 1a facilities will comprise an FPSO and shuttle tanker, 14 developments, comprising eight producers, five water injectors, and one gas producer/injector. It would produce 160 MMbbl over 15 years and cost about $1.8 billion.
Premier Oil operates PL004b with 36% interest with partners FOGL (40%) and Rockhopper Exploration (24%).
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