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Encouraging results from Eagle exploration

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Oilfield Technology,

The implementation of EnQuest's 2016 drilling programme in the Central North Sea has been excellent. Drilling of the Scolty/Crathes development wells was completed ahead of schedule and under budget. The Scolty reservoir was on prognosis and the Crathes reservoir exceeded expectations, with a small reserves upgrade.

In 2Q16, EnQuest undertook the drilling of an Eagle exploration well on a 100% working interest basis. Eagle was acquired along with EnQuest's other interests in the Greater Kittiwake Area ('GKA') in 2014. The Eagle exploration well was completed recently and confirmed as a discovery. Assessment of the results is underway and preliminary analysis indicates Fulmar oil bearing reservoir was encountered with a vertical thickness of 67 ft and excellent reservoir properties. Additionally no oil water contact was encountered, representing potential upside volumes on the flank of the structure. The encouraging results of the initial analysis lead EnQuest to anticipate gross total recoverable reserves to be a similar size to those in the nearby Gadwall producing oilfield. Gadwall is part of GKA and was successfully returned to production by EnQuest in H2 2015; it is estimated that total gross ultimate recovery from Gadwall will be approximately 6 MMstb. Further evaluation of the Eagle results is ongoing.

Neil McCulloch, EnQuest's President, North Sea said:

"Drilling performance in the Central North Sea this year has been excellent, both ahead of schedule and under budget; this builds on EnQuest's outstanding North Sea drilling performance in 2015, also under budget. I am now also pleased to confirm that the initial results of the drilling of the nearby Eagle exploration well have confirmed a new discovery. Following last year's production growth and unit operating cost reduction successes at GKA, this latest success demonstrates EnQuest's ability to create value from maturing assets and from near field exploration opportunities."

Adapted from a press release by Louise Mulhall

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