Partnership Confirms Interest in Second Well at Breagh Field

Canada-based Sterling Resources announced that production at the Breagh field has been resumed to normal levels, confirming the partnership’s plans to hydraulically stimulate the A07 well n the UK Southern North Sea. 

‘Total net production at Breagh during 2013 was 309 MMscf. Expected production guidance for 2014 remains 129 MMscf/d for 100 percent of the field (39 MMscf/d net to Sterling), as previously announced on November 20, 2013,’ the company explained in a note released on Monday.

According to Sterling Resources, the remaining capital expenditures for the first phase of the Breagh project are expected to be £23 million (US$37 million). 

The first phase, which includes the hydraulic stimulation of well A07 and the new A08 well, should be completed by 2016.

‘An appraisal well is also scheduled to be drilled during the second half of 2014 on the Crosgan gas discovery, located 25 kilometres northeast of Breagh on blocks 42/10 and 42/15,’ reads the note.

The field is majority owned by Germany’s RWE Dea. The field in UK’s Southern North Sea is one of the main new projects in the North Sea. RWE started production in the field in October after some difficulties. The company expects an average annual production volume of 1.1 bcm from 2014 to 2018.