Drilling done by Oilexco and its partners uncovered “at least 452 feet of oil column” in the Huntington Fulmar field in the central North Sea, the company said in a news release. Oilexco, which has a 40 per cent stake in the Huntington prospect, said it is studying “fast-track development options,” and that tenders for long-lead items will soon be issued.
AMP NOTE :
The company is now going to start the tender process for the industrial equipment to move forward production from this discovery.
The Huntington Forties oil-accumulation mapped area has been enlarged, and the company expects to apply for regulatory approval to develop the field by the middle of the year.
“The Huntington find now appears to be larger than initial expectations,” said Memet Kont, an analyst with UBS Securities. Oilexco continues to deliver strong drilling results. “Huntington and area have proven to be oil-rich and as such, future drilling prospects in the vicinity will likely generate significant enthusiasm.”
Art Millholland, Oilexco's chief executive officer, said the continued success at Huntington is one of the “most exciting developments” in the U.K. North Sea in recent years. The “size of the discovery offers significant upside potential,” he said, adding that he was pleased the development studies are progressing rapidly.
The company noted that the Huntington Fulmar discovery may be an extension of the nearby Mallory well, which was drilled in December.
AMP NOTE THAT IS saying the oil discovery may be four miles in length.
“The oil accumulations at Mallory and Huntington are possibly common,” Oilexco said. “Further appraisal drilling is necessary to evaluate and delineate the extent and commonality of the oil accumulation.”
Earlier estimates - prior to this release were a find of 200 Million barrels .
The newest estimates now run as high as 800 million barrels - which is the reason for advancing production from 2010.
Jack Bass is the editor of The Apprentice Millionaire Program market letter , available at www.amprogram.com His newest book is " Building Your AMP Portfolio ".
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