Monday 11 September 2017

Statoil' is facing disappointment with its exploration well on the Verbier prospect on the UK continental shelf in the North Sea.

Well partner Jersey Oil & Gas (JOG) revealed the 20/05b-13 well had been drilled in licence P2170 to a total depth of 4267 metres and encountered water bearing Upper Jurassic sands, deeper than anticipated.

A decision on drilling a sidetrack will be made after wireline logs are evaluated, however JOG added that it was “unlikely” further drilling would take place, in which case the well would be plugged and abandoned.

“We are naturally disappointed by these results, but remain in a strong position to continue to pursue our core strategy of growth through potential production asset acquisitions,” JOG chief executive Andrew Benitz said.

"In light of the Verbier result, the company will now update its evaluation of the P2170 licence acreage and consider the possible implications for the Cortina prospect, which remains an independent and prospective Upper Jurassic target."

The well was the first of three UK North Sea wells Statoil has charted the semi-submersible Transocean Spitsbergen for, with the other two wells in the campaign to be drilled on the Mariner and Jock Scott licences.

Statoil is carrying costs on the Verbier well up to $25 million for JOG, which also has a 10% cash carry with the other licence partner, CIECO.

Statoil holds a 70% operating stake in the P2170 licence, with JOG on 18% and CIECO with 12%.