Blackrock hits oil West of Shetland

Published on 14-05-2019 09:43:39
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Siccar Point Energy has announced that the Blackrock exploration well, 204/5b-2, has encountered oil in a number of thin sandstones, though it has not been declared commercial. The prospect sits on the Corona Ridge between the Cambo and Rosebank fields and was targeting 200mmbbls in the Paleocene Flett reservoir, which rests on the volcanics of the Colsay Member. Gas was also encountered in the overlying Hildasay member. The well was the first to test the additional potential of Siccar’s acreage around its Cambo field, which it estimates could be up to 1.5bnbbls.

The sandstones were interbedded within a 34m gross package of intra-volcanic siliclastic sediments. The presence of thin sands is not surprising given that Rosebank and Cambo also contain thin inter-bedded reservoir units, however Siccar has stated that it will use the Blackrock well data to define and target thicker reservoir packages, suggesting that the sands were thinner than expected. In addition any further appraisal would need to demonstrate the connectivity of the sands as this can be a challenge within thin sand packages. In 2018, Siccar, together with partner Shell, drilled an appraisal well at Cambo and established excellent reservoir quality and test rates of ~5000bbls/d of dry oil. The analysis of the extended well test results also showed that the reservoir was well connected, and the partnership is currently progressing towards development sanction for the field. If commerciality can be demonstrated with further appraisal, Blackrock could be tied back to any future development at Cambo or Rosebank.

Blackrock was highlighted in our ‘Exploration Watch: 2019 exploration wells’ report.

Summary of exploration wells in Exploration Watch report

Prospect
Region
Operator
Resource estimate*
Estimated spud 2019
Current status
Winx-1
Alaska
88 Energy
400mmbbl
February
Non moveable hydrocarbons
Presto
Norway
Equinor
160mmboe
February
Dry
Blackrock
West of Shetland
Siccar Point
200mmbbl
Q2
Oil and gas
Jethro
Guyana
Tullow Oil
>100mmbbl
May/June
Joe
Guyana
Tullow Oil
150mmbbl
Mid-July
Warwick (x2)
West of Shetland
Hurricane Energy
935mmboe
Q2/Q3
Carapa
Guyana
Repsol
>200mmbbl
Q3
Chimera
North Sea
Cairn Energy
154mmboe
Q3
Block 7
Mexico
ENl
200mmboe
Q3
Alom
Mexico
Cairn Energy
140mmboe
Q3
Bitol
Mexico
Cairn Energy
180mmboe
Q3
Velociraptor/Fox
Mongolia
Petro Matad
201/206mmbbl
Q4

Source: Edison Investment Research, *Operator estimate where available
P1830 partnership: Siccar Point (52.5% and operator), Suncor (25.0%) and Shell (22.5%).

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