Rick Wilkinson
OGJ Correspondent
MELBOURNE, June 29 -- Key Petroleum Ltd., Perth, has acquired two producing onshore oil fields in southeast England for $4.05 million (Aus.) through its purchase of Midmar Energy UK-listed subsidiary Midmar Energy Onshore.
The two partially developed fields, Brockham and Lidsey, lie in the oil-prone Weald basin.
Key says the fields have low operational cost and upside potential.
Currently the total production is around 85 b/d, but Key believes there is potential to increase production through some innovating drilling techniques and workovers.
A simulation study run by Schlumberger in 2002 for Lidsey field indicated that this prospect had an estimated 9.2 million bbl OOIP. The study also suggested that a horizontal well drilled into the structure could increase production to in excess of 500 b/d.
Key also notes that Brockham field has potential for a further 483,000 bbl of reserves, which may be accessed via a workover on one of the underperforming wells. Present recoverable oil figure is 159,000 bbl.
Oil from the fields is trucked and sold to the nearby BP Hamble facility at Southampton.
Subject to government approvals and due diligence, the transaction should be completed by the end of July.
