Thursday 22 June 2017

UK authorities are hoping to stimulate more drilling for often-overlooked tight gas accumulations in the UK southern North Sea following the publication of a new strategy on Thursday.

The document sets out a framework for nurturing the conditions that could help operators get after the substantial 3.8 trillion cubic feet of tight gas the Oil & Gas Authority (OGA) conservatively estimates is accessible in the SNS, including infill opportunities, undeveloped discoveries and prospects.

Eric Marston, OGA area manager for the southern North Sea and east Irish Sea, said tight gas reservoirs - with rocks of low permeability that need some sort of stimulation to get gas to flow - have often been disregarded as high cost and high risk, with licence holders tending to focus instead on less complex developments with lower costs and higher recovery factors.

“Maximising recovery of tight gas represents a real opportunity to extend the life of the southern North Sea’s existing infrastructure, including the development of marginal fields and potentially the redevelopment of existing fields,” said Marston.

“In addition, we can expect an upturn in activity to benefit the supply chain by building their capability and expertise in tight gas.”

If successful, and based on current gas price projections and analysis of operators’ work plans, the OGA believes exploration, appraisal and development drilling for tight gas to increase in the short to medium term.

Only two to four wells - one exploration and one to three development wells - are expected to be drilled by operators this year in the UK southern North Sea.

Next year, however, drilling could leap to about 10 to 12 wells, according to the strategy.

Furthermore, an average of about eight wells per year could be sustained until mid-way through the next decade.

Marston said the OGA has been working with East of England Energy Group’s (EEEGR) SNS Rejuvenation Special Interest Group, which has been supporting work around tight gas exploitation.