By OGJ editors
HOUSTON, Sept. 12 -- Sojitz Energy Project Ltd. plans to acquire a stake in Newfield Exploration UK Ltd.'s Southern Gas basin exploration and development program, including Grove field.
Grove is expected to come on stream in December with production anticipated to reach 60 MMcfd of gas and 1,000 b/d of oil by early 2007.
The $100 million transaction, subject to UK government approval, calls for Sojitz to receive 15% of Newfield's interest in Grove field and 20% of Newfield's interest in the West Cutter prospect, Seven Seas discovery, and two wells drilled in the West Sole area under Newfield's exploration-development agreement with BP Exploration Operating Co. Ltd.
Newfield recently installed a production platform in Grove field. The platform has production capacity of 100 MMcfd of gas and 2,000 b/d of oil. Newfield is drilling the Grove 5 well as a horizontal producer.
An exploration well drilled from a remote surface location into the western fault block recently encountered 40 ft of net gas pay. It temporarily was abandoned with a subsea production tree installed.
Final plans for that well will be determined after information from platform development wells is integrated into an overall field development plan, Newfield said.
In early 2005, Newfield announced a discovery with its wholly owned Grove prospect on Block 49/10a in the Southern Gas basin. Newfield has an agreement with BP to explore acreage around West Sole field (OGJ, Oct. 13, 2004, Newsletter).
