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Block 43/13a Location Map
Block 43/13a lies on the northern margin of the Southern Gas Basin.
Block 43/13a was a 23rd Round promote licence, subsequently converted to a traditional licence. EnCore has 100 per cent. equity in the block which contains the decommissioned gas field, Esmond. In December 2006, Star Energy farmed into the licence, originally for a 25 per cent. equity, which they then opted to increase to a 50 per cent. equity in December 2007 following the results of the Gas Storage Feasibility Study mentioned below. Star's 50 per cent. equity reverted back to EnCore in June 2009 following their decision to exit the project.
Gas Storage
On the 23rd of November 2007, EnCore announced that the Gas Storage Feasibility Study, which was conducted by Star Energy, demonstrated that the Esmond field shows potential to form the basis of a 145 bcf gas storage facility.
A conceptual design study, conducted by AMEC as part of the feasibility study, confirmed a capital expenditure estimate of £1.15 billion comprising two offshore platforms (with compression), a 200 kilometre 42" pipeline and a terminal at Bacton (with compression and gas processing), excluding cushion gas. (Sanction for development of gas storage is subject to the necessary regulatory consents.)
The next stage of the project was the drilling of an evaluation pressure test well on the Esmond field, the cost of which was met by Star Energy. In November 2008, initial results of the pressure test well showed the reservoir behaviour to be more complex than initially modelled. It indicated that some parts of the reservoir would perform as modelled and other parts may require a different engineering solution. The uppermost Esmond reservoir had not undergone any significant repressurisation, whereas the lower part of the reservoir had seen appreciable repressurisation. Wireline logging and pressure testing were also conducted to extract further information.
It was announced in January 2009 that following an extensive evaluation of the results of the well, Star Energy no longer wished to proceed into the Front End Engineering and Design phase of the project as required in the farm-in agreement with EnCore and as a result, Star Energy's 50 per cent. equity in the project reverted back to EnCore in June 2009.
During the latter half of 2009, EnCore commissioned an independent technical evaluation study of the revised development scheme, carried out by Helix RDS which confirmed EnCore's findings . The results of a reservoir simulation modelling study being carried out by Senergy are expected in early 2010 and are expected to confirm the reservoir's suitability for gas injection and withdrawal in both the upper and lower parts of the reservoir.
Additionally, EnCore has commenced the application to the Crown Estate for a lease and to the Department of Energy & Climate Change (DECC) for one of the newly established Gas Storage licences.
Back in November 2007, the Company announced its intention to demerge its gas storage business into a separately quoted company. However, in July 2008, EnCore announced that the demerger or sale would be postponed until after the results of the Esmond evaluation well. It is now anticipated that the gas storage project will be marketed to any interested parties in the first quarter of 2010.
EnCore news releases on Block 43/13a:
21 December 2009 - Activity Update
25 June 2009 - Activity Update
28 January 2009 - Esmond Gas Storage - Update
4 November 2008 - Esmond Evaluation Well - Initial Results
31 October - Esmond Evaluation Well - Drilling Update
24 October 2008 - Esmond Evaluation Well - Drilling Update
20 October 2008 - Esmond Evaluation Well - Drilling Update
24 September 2008 - Esmond Well Spuds
8 September 2008 - Gas Storage Update - Rig Expected This Week for Esmond Well
7 July 2008 - Rig Secured for Esmond Evaluation Well
8 April 2008 - Gas Storage and Demerger Update
4 December 2007 - Gas Storage Option Exercised by Star Energy Group
23 November 2007 - Feasibility Study Confirms Viability of Offshore Gas Storage Project
14 November 2007 - EnCore Announces Plans to Demerge Gas Storage Business
2 April 2007 - Offshore Gas Storage Feasibility Study Expanded
17 January 2007 - EnCore Oil Completes the Acquisition of Four UK Companies
15 December 2006 - Offshore Gas Storage Feasibility Study
25 October 2006 - EnCore to Acquire Additional Portfolio of UK Offshore Blocks through the Acquisition of Four Companies
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