RockRose Energy PLC will carry out evaluation of Cotton gas field (formerly Carna) in the UK sector of the southern North Sea prior to making final investment decision on the asset newly acquired by an agreement to buy 100% of the equity of Speedwell Energy Ltd., holder of 100% interest in the field.
Cotton field, 100 km east of Scarborough between Kilmar and Garrow fields—in which RockRose holds 15% interest—was discovered in 2009 by Venture North Sea Gas Ltd.’s 43/21b-5Z well, which encountered a gas column of up to 1,260 ft over six gas bearing sandstone units (OGJ Online, Aug. 4, 2017). At the time, the well—sidetracked to test a Carboniferous fault block—stabilized at 9 MMcfd of gas on a 48/64-in. choke from the target formation.
Speedwell estimates Cotton contains recoverable gas resources of 97 bcf (16.7 MMboe) and has the potential to produce at a peak rate of up to 70 MMscf/d (12,000 boe/d) from two horizontal development wells.
A draft field development plan (FDP) has been prepared by Speedwell for submission to the UK Oil and Gas Authority (OGA). Engagement with two identified key contractors and owners of the export infrastructure anticipated to be used is ongoing, RockRose said.
Initial consideration of the acquisition is limited, with the larger part of consideration becoming due at FID. The transaction is subject to regulatory approvals.
Andrew Austin, Executive Chairman of RockRose, said the acquisition gives the company "the option of a significant amount of production and reserves in an area of the Southern North Sea Gas basin in which we already have other producing assets."