BG , COPL Find Oil at Esperanza Prospect in UK North Sea

Canadian Overseas Petroleum Limited has made an oil discovery at its Esperanza exploration prospect located in Block 22/15 of the UK Central North Sea. Block 22/15 is a Second Round license.

The 22/15-4 well, operated by BG Group (“BG”), was drilled by the Ocean Nomad semi-submersible drilling rig to a total depth of 9,427 feet. A reservoir section was encountered in the Paleocene Forties sand at a depth of 8,677 feet, and a  minimum total of 52 feet of  net pay from a minimum gross section of 73 feet was penetrated by this well. Data obtained from well logs, coring and wireline pressure measurements indicate that the reservoir fluid is light gravity oil. Oil samples  were also successfully extracted from the wireline downhole sampler. COPL and BG have decided to proceed with drill-stem testing the well which is expected to take 10 days.

Once testing has been completed and the drilling vessel has been released from the site, COPL will have 120 days to decide whether it will exercise its right to purchase a 50% interest in the entire block from BG, which includes the Banks  discovery, for US$15 million.

Arthur Millholland, President and CEO of COPL, commented: “We are extremely pleased with the results from the Esperanza well and look forward to continuing our work with BG in the block.”

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Source: COPL, November 10, 2011;