By the OGJ Online Staff
HOUSTON, Aug. 6 -- A consortium began drilling in the Seven Heads prospect off Ireland, said operator Ramco Energy PLC, Aberdeen.
Ireland converted the group's licensing option to a lease. Ramco said its interest in the Seven Heads project increased to 49% from 37.5%, because of expenditures it made during the licensing option phase.
Other partners in the Seven Heads project are Duke Engineering & Services Ltd., 26%; Island Petroleum Developments Ltd., 20%; Northern Petroleum PLC, 4%; and Sunningdale Oils (Ireland) Ltd., 1%.
Ireland originally granted the licensing option in October 1999. It covered the southern halves of Blocks 48/23 and 48/24 and the northern halves of Blocks 48/28 and 48/29. Ramco said it permitted the group to carry out the evaluation of four wells previously drilled in the structure.
The group acquired 103 km of new 2D seismic over the area.
Seven Heads is 47 km from landfall on the Cork coast and 68 km from the landfall of Marathon's gas pipeline.
In June, Ramco awarded a contract to Pride Foramer SAS to use the Pride North Sea rig to drill in Seven Heads accumulation off Ireland. The rig will drill one well and has the option to drill a second one this summer on Block 48/24 (OGJ Online, June 20, 2001).
The first well should reach 4,000 ft subsea in 335 ft of water.
If sufficient gas is available and regulatory approval forthcoming, the group could bring Seven Heads on stream in 2003.
Ramco said, "Preliminary project economics show that gas production from the Seven Heads structure would be commercial if tied back to shore via existing infrastructure or through the construction of a separate pipeline to shore."
Ramco, Island and Sunningdale also have a licensing option over the Galley Head field, between Seven Heads and the Irish coast. Ramco said, "The economics of a separate pipeline to shore for Seven Heads would be significantly enhanced if the Galley Head field proves to hold commercial reserves."