Orcadian Energy plc is in line for a southern North Sea licence, adding to the two central North Sea licences previously awarded in the 33rd licensing round.
DEVELOPMENT
Licence blocks 49/25b, 50/21a, 49/30a and 50/26 contain the Earlham discovery with a high inerts content and the “exciting” undrilled prospect of Clover.
The company said that the North Sea Transition Authority had indicated it would offer it the licence.
Talisman Energy discovered Earlham in 1995 and encountered gas in the Rotliegendes.
In 1996, BP completed a long horizontal appraisal well which tested at “over 30 mmscf/day of gas” and contained 49% CO2 and 9% N2.
Orcadian estimates that the Earlham reservoir contains 114bcf of sales gas (methane) on a P50 basis.
The company’s preliminary development concept includes an offshore power station connected to the grid via a wind farm substation, with integrated CO2 capture and storage.
Orcadian aims to discuss its plans with wind farm operator RWE.
Clover, a “compelling” gas prospect, is a four-way dip closure reservoired in Bunter sands.
Orcadian estimates that P50 recoverable resources in Clover amount to 153bcf with a geological chance of success estimated to be 38%.
Chief executive Steve Brown described Earlham as the star of the new licence to be developed as a gas-to-wire scheme with integrated carbon capture.
“This is a project that anyone who is concerned with energy security, grid reliability, consumer bills, and emissions can get behind, and which demonstrates how our industry can adapt to a net zero world.
“In addition, there is also a cracking Bunter sand prospect which was cleaved in two by the Department of Trade and Industry in 1971, when they put a block boundary right down the middle of the Clover prospect.
“This is the first time in over fifty years that a single licence group has the whole prospect in hand which will enhance any potential farm-out opportunities for the licence in the future.”