Azinor Catalyst 2019 Drilling Campaign and Westwood Global Energy Group's Farm-out Opportunity Report
Friday 7 September 2018
Azinor Catalyst is preparing for its 2019 drilling campaign, having undertaken considerable work to de-risk the three prospects it plans to drill. With 100% equity in P2165, 80% in P2317 and 50% in P2179, it is offering equity in all the prospects to spread risk and preserve capital funds.
One or more farminees are being sought to participate in a three well exploration drilling campaign in the North Sea targeting combined Pmean prospective resources of 495 mmboe. Two semi-submersible rigs will be contracted for the campaign.
The P2165 16/8c Boaz prospect lies down flank from the Eirin Triassic gas condensate discovery in Norway and is a HPHT prospect. While the Eirin Discovery was made in early Triassic (Bunter) sandstone reservoirs, the primary reservoir objective in Boaz comprises mid-to late Triassic (Skagerrak) fluvial channel sandstones. Pmean prospective resources are 242 mmboe with a CoGS of 37%. The well is expected to cost c. US$21 million. A 50 – 75% interest is available.
The P2137 14/14b Goose prospect is a stratigraphic trap with a Lower Cretaceous Scapa sandstone objective. Unlike the Partridge prospect drilled in 2017, Goose sits directly within the main hydrocarbon fairway and is adjacent to, and up-dip of, an oil discovery made in Scapa sandstone reservoirs in the 14/20-6A well (Midlander). Pmean prospective resources are 75 mmboe with CoGS 36%. Dry hole well cost is estimated at US$11 million. Material interest is available.
The P2179 21/25c Hinson prospect is a HPHT Upper Jurassic trap in the hanging wall of the West Central Graben bounding fault. It is a stratigraphic trap with primary risk on reservoir presence. MOL operates and plans a well in H2 2019. The CoGS is 28% with Pmean prospective resources of 178 mmboe and well cost of US$21.6 million. A 10 – 60% interest is available from the JV on a promoted basis.
These are large prospects by current North Sea standards and represent high value exploration opportunities especially when drilled at current rig rates. All prospects are in areas with sufficient infrastructure and ullage to provide export routes, though Boaz and Hinson could become standalone projects if the mid-case is proven.