By the OGJ Online Staff
HOUSTON, Feb. 22�Talisman Energy Inc., Calgary, said the UK government has approved its plans to develop Halley oil field on Block 30/12 in the central North Sea.
Talisman also said production began Feb. 16 at the rate of 12,000 b/d from Beauly field on Block 16/21 in the UK North Sea.
At Halley field, drilling will begin in March with two extended reach wells from the Fulmar platform. Talisman has a 12.71% interest in Fulmar field, operated by a UK arm of the Royal Dutch/Shell Group.
Initial production from Halley is expected to be 18,000 b/d starting in mid-2001, with production sold through existing oil and gas pipeline systems.
Talisman said the field holds 11 MMboe and development costs will be below $7/boe. The expected field life is 5 years, although opportunities to add reserves will be evaluated.
Talisman Energy (UK) Ltd. holds 60% of Halley, and Amerada Hess Ltd. has 40%.
Jim Buckee, Talisman president and CEO, said, "Halley field is an excellent example of using initiative and existing infrastructure to unlock the value of small oil accumulations and bring previously undeveloped reserves to production."
Beauly field, with reserves of 3 million bbl, was developed with a single horizontal well tied back 5 km to the Balmoral floating production vessel.
Talisman is operator with 60% and Summit North Sea Oil Ltd. has 40%.
