A frontier play in the Atlantic Ocean west of the U.K.'s Shetland Islands continues to build.
In the latest action, drilling by Amerada Hess Ltd. confirmed that Schiehallion field's structure, a BP Exploration Operating Co. Ltd.-Shell U.K. Ltd. discovery, extends under an offsetting block Amerada operates.
Also in the Atlantic frontier off Northwest Europe, Norway's Den norske stats oljeselskap AS, Mobil North Sea Ltd., and Enterprise Oil plc of London signed a letter of intent for a joint study of exploration opportunities around the Faroe Islands.
AMERADA GAUGE
Amerada's new well, 205/25a-2, flowed hydrocarbons from several horizons. It flowed a maximum rate of 5,304 b/d of 27 gravity oil with gas:oil ratio of 320:1.
Drilled by the Sonat Arcade Frontier semisubmersible, the well is in 1,140 ft of water 3 km southwest of BP's Block 204/20-1 Schiehallion discovery (see map, OGJ, June 20, p. 17).
Schiehallion, a 1993 strike, holds estimated reserves of 250-500 million bbl of oil.
An Amerada official said it is too early to decide whether 205/25a-2's results will affect field reserve estimates. The company plans talks with companies involved in Schiehallion before deciding on further drilling.
Operator BP and Shell are equal shareholders in Block 204/20.
Amerada is operator and 47.05% shareholder in Block 204/25a, where Aran Energy Exploration Ltd., OMV (U.K.) Ltd., and Murphy Petroleum Ltd. each hold 17.65% interests.
The Amerada official also said the company's Stronsay discovery, which lies on the border of Blocks 204/30a and 205/26a about 30 km south of Schiehallion, has been identified as two structures in different formations.
These tentatively have been named Solan in Jurassic sands and Strathmore in the Triassic.
Further drilling on the Solan and Strathmore structures is slated for next year. Amerada said estimated reserves total 100-250 million bbl for the two reservoirs.
Michael J. Whelan, Aran chief executive officer said, "The fast track developments being examined for this major new oil province can encompass not only Schiehallion but also the nearby Solan and Strathmore discoveries in which Aran also has interests."
Amerada also increased its acreage West of Shetlands by acquiring outright Blocks 206/12 and 206/13a from Esso Exploration & Production U.K. Ltd.
Although Esso has not disclosed reasons for the sale, it said in 1992 a well it drilled, which flowed 2,545 b/d of oil on test, only confirmed the complexity of the Clair reservoir that extends under the blocks.
Tony Mulcare, commercial director for Amerada, said the acquisition increases"...our knowledge of the complex geology of this region and gives Amerada Hess a significant share of another potential development in this frontier area."
FAROES SURVEY
The Statoil-Mobil-Enterprise combine plans to buy and share seismic data on the Faroes continental shelf, currently being surveyed by Western Geophysical Corp.
Western last June began a 2 year program to collect 12,000 line km of seismic data to guide the Faroese government in its proposed offshore licensing round.
Statoil Exploration Manager Vidar Larsen said his company has experience of exploring the area from Ireland to northern Norway, and the Faroes lie in the same geological landscape.
The Faroese government hopes the survey will help confirm that the Faroes shelf is a geological continuation of formations in the U.K.'s West of Shetlands play, which lies southwest across a deepwater channel.
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