A&D marketing for the oil and gas industry

UK North Sea (P2278)

UK North Sea (P2278)

Offshore Exploration

Envoi is working with privately owned Aimwell Energy Limited, to assist Azinor Catalyst (“Azinor”) in the search for a drilling partner for Licence P.2278 comprising Blocks 13/16b & 17 located in the UK North Sea’s Inner Moray Firth. The acreage, covering some 300 km2, is located 140 km offshore northeast of Aberdeen in around 105 metres of water and is a traditional Licence awarded to Azinor Catalyst in 2015 during the 28th round, for an initial 4 year term to September 2019.

Aimwell’s technical focus and experience on the area has spanned over a decade in various phases of exploration with different companies, initially involving interpretations based on 2D data in 2004 which first highlighted the Upper Jurassic as a play target. This was later followed by 3D data acquired in 2006, but which only partly covered the area now known to be most prospective, although it clearly showed evidence of large undrilled potential in the Upper Jurassic. Merger of this 3D with the adjacent Captain 3D dataset and subsequent reprocessing in 2014-16 by Western Geco and Azinor, has proved instrumental in unlocking the Upper Jurassic Buzzard sand potential. This has not only fulfilled the current Licence obligation, but resulted in a significant enhancement to the data quality and enabled confident mapping of the large Churchward pinchout prospect that is now the obvious target.

This consists of a large structural/stratigraphic trap comprising Buzzard aged sandstones pinching out onto the Captain High on the southern flank of the Smith Bank Graben.  Volumetric estimates of the Churchward prospect using conservative reservoir parameters and based on a structural spill point associated with the Smith Bank Fault (which also coincides with a flat spot that can now be mapped on a number of lines), supports a mid-case resource potential of 525 MMbo recoverable. This has an estimated upside in excess of 2 billion barrels recoverable if a discovery confirmed a thicker Buzzard equivalent reservoir.

Azinor, and its carried technical partner Aimwell, would now very much like to find a near term drilling partner to help accelerate the planned well programme to test the Churchward prospect and benefit from the current availability of rigs and services whilst at their lowest rates for many years.

Azinor is offering a material interest in the P.2278 Licence in return for funding a well, estimated likely to cost only GBP £9 million (~ US$ 11.5 million equivalent) which is equivalent to a risk reward ratio of over 1:200.