‘Various options’ are on the table as the partners behind the ‘disappointing’ Serenity field try to garner some value from the project.
Europa Oil and Gas (LON: EOG), which farmed into the North Sea scheme earlier this year, says it is working with i3 Energy (LON: i3), of Aberdeen, to explore bringing the field into production.
Previously billed as a “company maker” by i3, appraisal drilling at the project, carried out in October, returned disappointing results.
It had been hoped Serenity, about 80 miles off Aberdeen, would contain an estimated 100 million recoverable barrels.
But hydrocarbons were “not present” at the appraisal well, having been drilled to a total depth of 5,630 ft below sea level.
Executed by Stena Drilling’s Stena Don, it was subsequently plugged and abandoned while further work was carried out.
Despite the blow, Westhill-headquartered i3 indicated there is still a way forward for the field.
Analysts have mooted a tie-in to the Repsol Sinopec Bleo Holm FPSO as one potential avenue, “potentially in tandem with Repsol Sinopec’s Tain discovery”.
In its pre-annual general meeting statement, Europa, which has a 25% interest in Serenity said “together with our partner i3E we are assessing the various development options to bring the field into production”.
Brian O’Cathain, chairman of Europa, will say at the AGM later: “Looking forward, I believe that we are starting to reap the rewards of delivering on our strategic vision, with strong cash flows from our onshore production, further development opportunities at Wressle and Serenity as well as material upside potential with our exploration assets in Ireland, about which we are very excited.
“The Board continues to believe that Europa would benefit from holding further appraisal and early development assets and supported by our strong cash flows we will continue to seek opportunities to acquire these types of assets. Our aim remains to engage in potentially high reward activity without putting the Company’s balance sheet at risk.”
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