UK firm chosen to drill well offshore Isle of Man
Isle of Man-based Crogga Limited has awarded Aberdeen-based energy services company THREE60 Energy with a contract to drill an appraisal well this year in the Crogga gas field in the Irish Sea.
The 112/25a-2 appraisal well, called Independence, will be used to establish commercial flow rates of gas from the conventional Permian Collyhurst Sandstone reservoir. It is the first well to be drilled under the island’s jurisdiction and, if successful, could lead to Crogga becoming one of the largest field developments in the East Irish Sea.
THREE60 Energy will provide detailed well engineering and well planning, including contracting of a drilling rig, procurement of drilling services and equipment, as well as offshore execution and project closeout, and will deliver well operator services, including engagement, liaison and accountability with regulators and stakeholders, emergency response capabilities and turnkey project management.
The company converted part of its payment for operating the Independence well into shares in Crogga Limited.
“Having drilled 14 wells in the East Irish Sea, the company has an excellent track record with demonstrable experience. THREE60 Energy also has ongoing familiarity with the specific requirements, as well as the competence, organisation and systems, to safely deliver wells on a turnkey basis,” said Richard Hubbard, Crogga Limited’s CEO.
“From the outset THREE60 Energy has displayed a thorough understanding of our project requirements, looked for mutual alignment of project drivers and demonstrated fast and flexible project implementation.”
The Crogga natural gas field, located offshore Maughold Head in the northeast of the Isle of Man, has a large resource base of 1 trillion-plus cubic feet (tcf) of gas-in-place (GIP), as defined by BP in 1996.
Crogga Limited was awarded an Isle of Man license for the gas field in 2018, with operations expected to commence late this year. If proven successful, the well is said to have the potential to provide energy independence to the Isle of Man by 2026.
Pre-drill evaluation of the Crogga gas field has been completed and the well will spud as soon as permitting is complete.
The Isle of Man-based firm has also launched an Offer Memorandum (OM) for the Independence Well Raise (IWR) of £32.5 million to cover well costs. A corporate update and a drilling rig contract will follow when the IWR closes on 24 February.
From most recent company-related news, it is worth noting that THREE60 Energy was selected by UK energy giant BP for well engineering services across its global operations.
The five-year global service agreement has already seen the Aberdeen firm support BP with well engineering services across the UK North Sea, U.S.A. and Trinidad.