Angus Energy plc reported steady production from the three producing wells of B2, A4 and B7T and plans for new wells at Saltfleetby gas field, east Lincolnshire.
PRODUCTION
Following a short duration plant outage, the company is exporting gas to the National Grid at a combined average daily rate of 9.5 mmscfd, reaching peak flows of over 10 mmscf.
The new B7T well continues to clean-up and the company said it anticipated exceeding a combined average daily rate of 10 mmscfd, on a sustainable basis.
NEW WELLS
Angus also plans to submit further applications to expand the Saltfleetby site to include new wells and process plant for natural gas, hydrogen and CO2 storage.
Drilling will initially be in the Namurian reservoir, below the currently exploited Westphalian, as a commercial source of natural gas.
Wells will also be designed as potential injection wells for gas storage, whether in the Namurian or Westphalian, which needs national planning approval.
NAMURIAN RESERVOIR
Angus said that the Namurian reservoir had produced 1.5 bcf to date but there was a “very wide variation “of gas in place between the company’s own recent competent person’s reports and internal estimates by previous operators, Gazprom-Wintershall and Roc Oil.
A full third party re-interpretation of both the Namurian and Westphalian reservoirs is underway and expected to complete in October.
In 2006 Gazprom-Wintershall estimated the storage capacity of the overall field to be 700 to 800 million cubic metres, “making it easily the largest onshore storage facility in the UK.”
Angus said its estimates of storage capacity were “somewhat higher and do not include the Namurian”.
OPPORTUNITIES
“The company is pleased to have reached this production milestone and to be able to turn attention to both organic and inorganic growth opportunities,” added chief executive officer Richard Herbert.
“Gas storage is an obvious and topical one.
“Properly engineered to manage H2 or CO2 as well as natural gas, storage at Saltfleetby has the potential to meet the twin demands of present and future administrations for clean energy and energy security and we are pleased to be able to align shareholder interests with those longer term goals whilst offering the possibility of enhanced gas recoveries in the medium term.”