No magic at Presto as well comes up dry

The exploration well Presto in the Norwegian North Sea has encountered good reservoir quality rocks, but, according to the Norwegian Petroleum Directorate, hydrocarbons were not present. UK independent Cairn Energy holds a 30% stake in the Equinor operated PL885 licence. The well was targeting 160mmboe gross mean resources in the Lower Cretaceous Agat sandstones with a secondary objective in shallower stacked channelised turbidite fan complexes in the Upper Cretaceous

Presto was a large stratigraphic trap which was relying on the reservoir sands pinching out to form an effective updip seal, and once the well data has been analysed, we suggest that a lack of seal is the likely cause of failure at this location.

Presto was highlighted in our ‘Exploration Watch: 2019 exploration wells’ report. We do not expect any further results from our highlighted wells over the next couple of months as the ongoing Blackrock well, West of Shetland is expected to take around five months to drill. The next well spud is expected to be the Tullow Oil operated Jethro well offshore Guyana.

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	Spudded 19/3/19
Jethro	Guyana	Tullow Oil	>100mmbbl	June
Joe	Guyana	Tullow Oil	150mmboe	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 availableOrinduik JV: Tullow Oil (60% and operator), Total (25%), Eco Atlantic (15%)