By OGJ editors
HOUSTON, Dec. 30 -- Endeavour International Corp., Houston, is budgeting $50 million for oil and gas exploration and development in the North Sea and the Netherlands in 2006. The budget covers a 10-well drilling program begun in 2005, nearly 75% of which will cover exploration and exploitation projects in the UK's North Sea sector. About $12 million is allocated for Norway's sector, and the remainder will be used to expand Endeavour's exploration program into the Netherlands.
Endeavour Energy UK Ltd.'s UK North Sea projects include continued drilling on the Turriff and Tulliallan prospects, which it operates with a 60% interest. It has completed the testing of two prospects from a single well bore drilled on Block 31/26b in the Central Graben area. The Turriff well tested a Jurassic Fulmar sandstone (OGJ Online, Dec. 30, 2005).
A shallower secondary prospect Tulliallan, which was aimed at a Cretaceous target, did not encounter reservoir-quality rock and has been sealed and abandoned. Two other wells drilled in the southern gas basin in 2005—one in the Prometheus prospect on Blocks 42/21 and 42/22 and one in the Fiacre prospect on Block 23/11 (N)—also found no commercial hydrocarbons.
The company plans to sign a farmin agreement covering blocks 44/11 and 44/12 in the southern gas basin and will begin drilling the first 2006 exploratory well in January. Gaz de France is operator of the two blocks. Endeavour holds a 12.5% working interest in the well—the first of six planned as a continuation of the 2005 campaign.
Norwegian North Sea projects include exploration on two production licenses awarded in 2005. Endeavour Energy Norge AS was named operator with 50% interest in PL 354, which encompasses four blocks in the greater Ekofisk area. The area, in the southernmost part of the Norwegian North Sea, is adjacent to Endeavour's Blocks 31/26b, 31/21b, and 31/27b on the UK Continental Shelf. The second license, PL 363, is further north, on Block 25/5 and east of the Alvheim development area. Endeavour will hold a 40% interest in that license.
In additional to the exploration budget, $11.6 million will be allotted for the purchase of an 8% interest in Enoch field from Petro-Canada UK Ltd. on Block 16/13a on the UK Continental Shelf North Sea—a transaction expected to close in first quarter, 2006. Production from that project, expected to begin in fourth quarter, 2006, will be tied back to Brae field 9 miles to the northwest. Paladin Expro Ltd. is operator of the field with a 24% interest.
