Whisby-6 well (Terrain 85%) flows at 168 bopd

The Whisby-6 well was successfully drilled in 2016 and encountered a good oil-saturated basal sandstone with initial production of 168 barrels of oil per day (of which Terrain receives 85% until it has recovered its drilling costs, reducing to 62.5% until 250,000 barrels in total have been produced, after which it drops to 50%). The well is still free-flowing some 8 months after production started but it is anticipated that it will be put on pump early in 2017.

Brockham – greater potential than the Gatwick Gusher?

In the last few years the unconventional oil and gas potential in the Weald has received significant attention and various operators have undertaken studies and tested wells to improve their understanding of this potential (most notably Horse Hill Development Limited’s drilling and testing of the Horse Hill-1 (“HH-1”) well). The flow tests of the HH-1 well nearby the Brockham field were carried out in the first quarter of 2016 and indicated the potential of the deeper Kimmeridge Limestones.

UK Oil & Gas Investments PLC on 21 March 2016 announced that the HH-1 well had flow-tested from 16 February 2016, at a total aggregate stable dry oil flow rate of 1688 barrels of oil per day (“bopd”) from two Kimmeridge limestones plus the overlying Portland sandstone. The Kimmeridge reservoirs are classified as unconventional. Nevertheless, the well tests indicated that conventional industry techniques may be sufficient to develop and produce the petroleum. Further well flow tests are planned by the Horse Hill operator. It is Xodus’ view that whilst the flow test results at Horse Hill are a relevant analogue for the Kimmeridge potential in the Brockham field, given the lack of understanding of the subsurface model it is not possible to provide any meaningful figures or chance of success associated with the Kimmeridge potential in Brockham. A recent study by Nutech Energy Alliance Ltd (“Nutech”) on the deeper sections of the Brockham-1 well has identified oil potential in the Portland, Kimmeridge, Oxford, Oolite and Lias.

In the report Nutech provides estimates of the volumes of oil in place per square mile, based on the Brockham-1 well, to be in excess of those at Horse Hill.

Gas kick at geothermal well on Egmating licence

When drilling the Holzkirchen geothermal well on the Egmating licence, overpressured gas was encountered in the Rupel Sandstone at 4200m. The gas had to be flared for 4 days before the well was brought back into control. An analysis of the 3-D seismic data allowed the presence of the gas to be identified and the well was plugged back and a deviated sidetrack was successfully drilled to avoid the gas and reach the Malm target horizon. 

Interpretation of the limited 2-D currently available to the company suggests the potential for as much as 75BCF of gas to be present. Work following up on this discovery will continue in 2017.

Terrain successfully completes gravity survey

Terrain is pleased to report that the acquisition phase of the gravity survey in the Starnberger See licence has been successfully completed. The data will now be processed and integrated into the technical interpretation of the area over the next few months.

This May Terrain Energy started a gravity survey in the Starnberger See licence area.

The programme involves measuring the strength of the gravity field at a series of points in the area and is being conducted by Prof Kord Ernstson. All of the equipment fits inside a hand portable box and each measurement only takes a few minutes. There is no ground disturbance whatsoever.

Depending on various influence factors the data acquisition phase should be completed by the end of May and the processed results will assist in interpreting the sub-surface structure.

Burton-on-the-Wolds Well.

The Burton on the Wolds-1 well was spudded on 18 October 2014 and reached a total depth of 1086 metres on 28 October 2014. The well penetrated only thin sands in the primary reservoir objective, the Rempstone Sandstone group, while the deeper secondary objective was encountered as non-reservoir rock.

Electric wireline logs have now been acquired in the well. Although weak hydrocarbon shows were observed while drilling through the Rempstone sands, interpretation of the log data indicates the thin sands to be water bearing.

The well is currently being plugged before the drilling rig is released from contract and, in due course, the well-site will be restored to its original condition as agricultural land.

Terrain, along with its partners, is awarded the P2123 licence just off the coast of Northern Ireland in the 27th Offshore Licensing Round.

An area offshore Larne-Lough Neagh Basin, the P2123 licence, was offered by DECC to the joint venture partners as part of the 27th Seaward Licensing Round. Formal award of the licence is expected within the next two months. The joint venture has identified prospective resources of 150 mmboe within the new licence area.

Following its acquisition by Cairn Energy plc, Nautical has decided to withdraw from the PL1/10 licence. A farmout agreement with Nautical has been terminated and Terrain will acquire 10% of their 20% interest, subject to DETI approval.

Licence PL1/10, Larne Lough Neagh Update.

We are pleased to announce that permission has now been confirmed under Permitted Development for the proposed PL1/10 exploration well. It permits a window for activities on site between September and March. Plans are progressing towards commencement of site construction on 1 September 2014, so that drilling may also commence in November 2014. In order to drill the well, the operator will consult with a number of stakeholders, including Northern Ireland Environment Agency and Northern Ireland Health and Safety Executive, and obtain consent to drill from the Department of Enterprise, Trade and Investment (“DETI”). An agreement for a lease over the land for the wellsite will also need to completed.

The well will target prospective resources estimated by the joint venture at 40 mmboe (4mmboe net to Terrain). Prospective resources of over 450 mmboe have been estimated by the joint venture within the licence area.

Terrain Energy Acquires Two Exploration Licences In Germany.

On the 12th December 2013 Terrain Energy received notification from the Bavarian Ministry for the Economy, Infrastructure, Transport and Technology that it had been granted 100% of the Bruckmühl and Starnberger See oil and gas exploration licences which are located to the south and southwest of Munich in the Molasse Basin.

Exploration and production in the area occurred primarily in the 1960s through the 1980s. A number of gas and oil fields were discovered in sandstones of Lower Cretaceous to Tertiary age and there are potentially deeper and shallower reservoirs. Companies pulled out of the area following the oil price crash of 1986 and with the difficulty and expense of accessing seismic, well and production data the area has remained relatively under-explored.

The licences cover an interesting area from a technical standpoint in that there appears to be pervasive hydrocarbon charge, multiple good quality proven reservoirs and relatively simple structural traps.

Terrain is planning a 2D seismic acquisition programme over the two licences in 2014 with the possibility of drilling an exploration well in 2015 should the seismic identify suitable prospects.

Terrain Energy is an oil and gas exploration and production company that owns interests in nine licences onshore in the UK and Germany. Terrain is wholly owned by funds under the management or advice of Calculus Capital.