Ireland: Low cost development solutions sought for Helvick and Dunmore

Oil and gas technology company Marginal Field Development Company (MFDevCo, formerly ABT Oil & Gas Limited) has farmed into the Helvick oil field and the Dunmore oil discovery, in Standard Exploration Licence 2/07 in the North Celtic Sea Basin, offshore Ireland.  

According to NU-Oil, an independent oil and gas company that has a 50% interest in MFDevCo, a two year lease undertaking in respect of both discoveries has been granted by the Minister of State at the Department of Communications, Energy and Natural Resources of Ireland, with effect from March 1, 2016 to allow for evaluation of low cost development options.

The phased farm in agreement between MFDevCo, then ABT Oil & Gas, and Providence Resources was originally announced on November 13, 2013. Providence then, on behalf of its joint venture partners, applied to the Minister of State at the Department of Communications, Energy and Natural Resources to convert that part of SEL 2/07 into a lease undertaking.

The award of the lease undertaking triggers a staged 50% farm-in by MFDevCo, with an agreed work programme for staged equity participation:

– 10% initial working interest assignment to MFDevCo, subject to Ministerial consent;

– Further equity assignment (up to 40%) based on undertaking the agreed work programme and receipt of a Petroleum Lease from the Minister and the approval of any Plan of Development.

Nigel Burton, CEO of NU-Oil, commented: “MFDevCo and the MFD Consortium’s solutions have the potential to improve the commercial viability of fields and we look forward to them being utilised to advance Helvick and Dunmore for the benefit of all interest holders.”

 

Helvick

 

The Helvick oil field is located in Block 49/9, some 36 kilometres off the south coast of Ireland. The Helvick discovery well, 49/9-2, was first drilled in 1983 and flowed at a cumulative rate of approximately 9,900 BOPD and 7.5 MMSCFGD. Three appraisal wells were subsequently drilled in the late 1980s to delineate the field.

In 2000, Providence drilled the 49/9-6Z well which was tested at rates of approximately 5,200 BOPD. Further detailed analysis indicated that the Helvick reservoir is relatively small in size and, due to this small size and the low oil price at the time, the field was not deemed commercially viable.

However, MFDevCo and the partners now believe that Helvick is potentially commercial using MFDevCo and the MFD Consortium’s new low cost development solutions.

 

Dunmore

 

The Dunmore discovery is located approximately 20 kilometres north of the Hook Head discovery in the Celtic Sea. The discovery well, 50/6-1, was drilled by the then Operator, Gulf Oil, in 1985/86 and flowed at a rate of approximately 2,100 BOPD of high quality (44º API) oil.

During 2008, Providence drilled the 50/6-4 appraisal well on the Dunmore structure and, whilst the well failed to prove the lateral extent of the hydrocarbon bearing Upper Jurassic sands, a new oil bearing carbonate interval was intersected.