Upland Resources and Baron Oil relinquish interests in UK offshore licence

Licence P2470 included blocks 11/23, 11/24c and 11/25b, surrounding the Wick Prospect and was applied for before the results of the 11/24b-4 Wick well were known. Although they contain the small Knockinnon oil discovery the prospectivity of the blocks was downgraded by the dry Wick well, which Baron and Upland drilled at the beginning of 2019.

The modest work commitment on this licence consisted of a small volume of 3D seismic reprocessing, which has now been completed. Baron and Upland said that the results of such work were not encouraging and the decision has been made to relinquish the licence with effect from 31 March 2020.

Baron has said that the relinquishment of the licence does not affect Licence P2478, over blocks 12/27c, 17/5, 18/1 and 18/2. This contains the Dunrobin prospect which consists of three large shallow Jurassic rotated fault blocks that are mapped mostly on 3D seismic data within a single culmination with Direct Hydrocarbon Indicators. The lowest closing contour covers 40 km² and the operator, Corallian Energy, estimates the prospect to have Pmean unrisked Prospective Resources of 172 million boe, with upside recoverable potential of c. 400 million boe (P10). Additional Pmean unrisked Prospective Resources of 23.5 million boe are estimated by Corallian for the smaller Golspie Prospect, also contained within the licence. These resource estimates are non SPE-PRMS compliant recoverable Prospective Resources for the Jurassic sands primary target. Both prospects are defined by existing 3D seismic with supporting 2D seismic and reprocessing of these data is underway. There is no current drilling commitment on these blocks, although the licence must be relinquished before the end of the 4th year, being September 2023, if no well has been drilled.

Malcolm Butler, Executive Chairman of Baron Oil, commented: "The decision to relinquish Licence P2470 was taken in light of the fact that the area was applied for before the disappointing results of the Wick well were known and because the results of our seismic reprocessing work were not encouraging.

In contrast, the P2478 licence area is highly prospective and we have already identified significant potential in the acreage. Our initial work commitment consists mainly of 3D seismic reprocessing which we anticipate will enable us to define at least one near-term drilling location. P2478 lies in an area which attracted multiple bids as part of the UKCS 31^st Offshore Licensing Round, including successful ones from major companies."

Chris Pitman, CEO of Upland Resources, said: “The original application was made prior to the drilling of the Wick Prospect and following a post-drill review of the well, the remaining potential of the P2470 licence has been downgraded. The relinquishment of P2470 is in line with our strategy of focussing solely on opportunities that will provide meaningful returns to our shareholders.”

Read the article online at: https://www.oilfieldtechnology.com/exploration/09042020/upland-resources-and-baron-oil-relinquish-interests-in-uk-offshore-licence/