Some key points from the Agreement:
- Saltfleetby Energy to contribute with £2.5 million
- Angus Energy Weald Basin No. 3 Limited to use the funds for a) to assume 100% of the costs related with the reconnection of the Saltfleetby Gas field to the National Gas Grid or b) to assume all abandonment costs of the field if reconnection at commercial rates is not available.
- The Directors are confident that option a) is possible within the budget and advised timescale of completing work between May and August 2020.
- OGA approval is expected
The Saltfleetby Gas Field is located onshore in East Lincolnshire at the western extent of the Humber Basin, midway between the Southern North Sea gas fields and the established Onshore Oilfields of Welton and Scampton North. A commercial discovery was made in 1996 after re-entering an exploration well drilled in 1986.
The field was put on stream in December 1999 producing from Early Westphalian sandstones at a depth of 2300 m. This is a proven reservoir comparable with other established oilfields in East Midlands Basin with multiple sources of hydrocarbons including Westphalian coals and organic-rich basinal mudstones.
In total eight wells and several sidetracks have been drilled since production first commenced with seven completed and licensed for production – being near horizontals (2 with full core available).
A 3D seismic block was acquired in 1997-98 which, with reprocessing in 2003, provides a high degree of confidence in the structural mapping of the field. Full delineation of the field from this 3D seismic mapping indicated an in-place estimate of 20.15 MMboe based on a peer-reviewed Geological Society paper by T. Hodge in 2003.
11.84 MMboe has already been produced from the reservoir with an additional 1.1 MMbls of gas condensate.
Upside drilling opportunities exist in the untapped faulted blocks with structures to the South and North West.
According to a Field Development Plan prepared for submission to the OGA in 2016 by the previous owner, an estimate of an additional 2.24 MMboe should be recoverable from 2 remaining wells in production.
Angus considers two future production profiles based on past production trends. These indicated that 1.76 (conservative) – 3.18 (optimistic) MMboe could be recoverable over a 10 – 12 year period. Additionally, 0.1 – 0.18 MMboe (gross) would also be recoverable.
To reconnect the field, Angus will install in-house processing facilities, including compression and dew-point control on-site at the Saltfleetby Gas Field.
The gas will be treated so that its characteristics fulfil the specifications for the National Grid system, which supplies domestic and industrial consumers. The gas will then be transported via a pipeline to the National Grid entry point at NTS Theddlethorpe.