Nexen group's Hobby discovery flows 5,500 b/d

Nexen Inc., Calgary, will drill several sidetracks to measure the extent of its oil discovery named Hobby on UK North Sea Block 20/1N.

March 11, 2009

By OGJ editors
HOUSTON, Mar. 11 -- Nexen Inc., Calgary, will drill several sidetracks to measure the extent of its oil discovery named Hobby on UK North Sea Block 20/1N.

The discovery well, 1.5 km west of the Nexen-operated Golden Eagle discovery, averaged a restricted 5,500 b/d of oil through a 56/65-in. choke from an oil column of unspecified thickness. Nexen reported testing high-quality crude oil from good quality reservoir sands at the discovery well (OGJ Online, Feb. 17, 2009).

Nexen operates three discoveries in the area and has 34% interest in Hobby and Golden Eagle and 46% interest in Pink. The company plans more exploratory and appraisal drilling this year in the area just north of giant Buzzard oil field, which was discovered in 2001 and began producing in 2007.

Nexen said development of the discoveries is economic at current commodity prices.

Other interest holders in the Golden Eagle area are Maersk 36%, PetroCanada 25%, and Edinburgh Oil & Gas 5%.