Calgary-based Sterling Resources issued its 1Q results today, reporting US$20.5million revenue attributable to production from the Breagh gas field in the UK North Sea, and expenses of $2.6 million during the quarter.
The average expected gross gas sales production for 2014 at Breagh remains at 90 to 95 million MMscf/d, which is net 27 to 28.5 MMscf/d to Sterling.
“Although the original production expectations for Breagh have not been met, we have seen the first substantial production revenue during the first quarter of 2014,” said Jake Ulrich, CEO of Sterling. “We will continue, in conjunction with the operator, to optimize the Breagh field in order increase both the efficiency and reliability."
In March, the operator of Breagh, RWE Dea AG, was sold to Luxembourg-based, Russian-backed LetterOne Holdings SA.
Breagh production resumed in early May following a three-week shutdown to address fouling within the slug catchers and to replace level control instrumentation in order to improve processing reliability at the Teesside Gas Processing Plant (TGPP).
During early May, the Ensco 70 jack-up rig returned to the Breagh field to begin completing well A07 using hydraulic fracture stimulation (fracking), which will be followed by the drilling and completion of well A08.
The Ensco 70 rig will then be moved 25km northeast to drill a well at Crosgan.
Breagh wells A09 and A10 are proposed to be drilled in 2015 from the Breagh Alpha platform (installed in October 2011), following new 3D seismic acquisition over the field, currently underway.
Read more:
Russian-backed firm buys RWE Dea, 17 March 2014
RWE Dea gains operatorship of three UK licenses, 20 December 2013
Breagh shut-in continues, 20 November 2013
RWE Dea brings Breagh online, 14 October 2013
Breagh set back again, 23 September 2013
Subscribe
