So the news is out.
Deo has effectively backed into an old cash shell with the highly regarded technical team from Oilexco. Between them they have a wealth of experience in the North Sea and especially subsea developments.
This is the first deal for the company and looks like a very interesting outfit.
Those ex Dana holders may notice that the other big partner in the block is PetroCanada, which of course has now been acquired by Dana and now KNOC.
From the RNS::
The Perth Assets comprise a 42.08 per cent working interest in certain Licence
Areas in the UK Central North Sea. The Perth Field Development is located
approximately 185km northeast of Aberdeen in a water depth of 127m (450ft).
The discovery well 15/21a-7 was drilled in 1983 and tested oil in the Claymore
sands of the Upper Jurassic Kimmeridge Clay Formation. Three subsequent
appraisal wells (15/21b-47, 15/21b-49, 15/21b-56) and one sidetrack (15/
21b-47y) were drilled by Hess between 1992 and 1997. The wells were production
tested at rates varying from 1,000 to 6,000 bopd, all with H2S content
(2,500-8,500 ppm) and CO2 (25-42 mol per cent.) in the associated gas.
The Perth Field Development has subsequently been divided into four main areas
by an east-west fault to the north of the three appraisal wells and a
north-south fault zone between these wells and the discovery well. The areas
are referred to as:
• Perth Core - the three appraisal wells and one sidetrack
• Perth North - undrilled
• Perth Beta Terrace - discovery well 15/21a-7
• Perth Beta East - undrilled
Total 2C contingent resources of 20.6 MM boe have been identified for an
initial Perth Core area development. AGR TRACS define a development chance of
commerciality of the Perth Core area at 60 per cent. This, however, will change
if partner intent and commitment to develop becomes apparent.
In summary, the Board believes that the Acquisition provides the following:
• total 2C contingent resources for an initial Perth Core area development of
20.6 MM boe;
• two possible development options: tieback to Tartan platform; or use of a
• other prospective acreage (Perth North, Perth Beta Terrace, Perth Beta East,
Dolphin, Sigma and Gamma) which forms part of the Licence Areas being acquired;
• the opportunity to submit an FDP as operator to DECC; and
• ability to potentially achieve first oil production by January 2013.
Further details in relation to the Perth Assets can be found in CPR contained
in Part III of the AIM Admission Document.
There are two main development options, through a tie back to Tartan or an FPSO.
The "easiest" option is obviously the tieback though an FPSO brings in more value for further development of the other areas such as Dolphin, Sigma, Gamma and the other Perth areas.
This is sour and horrible stuff but there shouldnt be any problem with a tie back through Tartan given how they're set up and is no "biggie" these days.
The problem with developing Perth previously has been as a result of the limited ullage at Tartan but with production there declining this is now an option.
One intersting one to follow me thinks.
Disc - we took part in the placing.
EDIT - Here's a link to the pathfinder prospectus with lots of information on the development and assets.