Shell UK Ltd. has completed drilling the AN-4 infill well on Arran gas condensate field on the UK Continental Shelf. The well is scheduled to begin production later this year with the aim of improving recovery from the field.
The well was completed sometime after the February deal between Norwegian oil and gas operator DNO ASA subsidiary DNO Exploration UK Ltd. and ONE-Dyas E&P Ltd. for a 25% interest in the field, DNO said in a May 16 release announcing the deal's completion (OGJ Online, Feb. 6, 2024).
DNO’s share of production of gas (principally) and liquids from Arran during the first 4 months of 2024 averaged 3,150 boe/d, up from the 2,000-2,500 boe/d projected in February, DNO said.
Adjusting for interim cash flow from effective date Jan. 1, 2024, to the completion date of May 15, 2024, the consideration paid upon completion was about $60 million, down from the original $70 million. The contingent consideration of $5 million that was payable if certain operational targets were met will not be paid, DNO said.
Arran lies 240 km east of Aberdeen, close to the UK-Norway median line in Central North Sea in blocks P359a/b, P1051, and P1720. Water depth is 85 m. The field was brought on stream in 2021 as a 60-km subsea tie-back to the Shell-operated Shearwater A platform. Shell UK Ltd. is operator of Arran field with 44.57% interest. RockRose Energy holds 30.43% and DNO holds 25%.