CAPEL FORESEES ROBUST DRILLING IN U.K. NORTH SEA

The number of exploratory and appraisal well starts in the U.K. North Sea this year will exceed 200, says a revised estimate by James Capel & Co. Petroleum Services, London. At the end of last year Capel forecast about 230 exploration and appraisal well starts for the U.K. North Sea during 1990. But in May this figure was downgraded to about 200 after taking into account rough weather conditions in the first quarter. Capel now estimates the number at more than 200. And next year the count

Sept. 10, 1990

2 min read

The number of exploratory and appraisal well starts in the U.K. North Sea this year will exceed 200, says a revised estimate by James Capel & Co. Petroleum Services, London.

At the end of last year Capel forecast about 230 exploration and appraisal well starts for the U.K. North Sea during 1990. But in May this figure was downgraded to about 200 after taking into account rough weather conditions in the first quarter.

Capel now estimates the number at more than 200. And next year the count will be about 240.

The high level of drilling reflects the award of new acreage, the approach of ninth round relinquishments in May 1991, and higher oil prices.

By mid-August, 120 wells had been spudded, exceeding last year's total at this time by 20%.

RIG FLEET

The U.K. North Sea fleet of jack ups and semisubmersible is working at almost 100% utilization. A number of additional units heading for the region will boost the number of available mobile rigs to 40.

Capel said if each of the rigs spuds only two more wells the 200 mark will be reached before yearend of the year. However, some of the second half wells are scheduled to require 20 days to drill and test, and at that rate some rigs will start five or six wells before yearend.

Day rates for mobile rigs have increased significantly during the year, with rates for standard jack ups rising from less than $25,000/day to $45,000/day and standard semisubmersibles up from less than $20,000/day to about $40,000/day.

High specification units continue to command higher prices because demand exceeds supply.

Capel said that if rig demand stays at the current levels, day rates will continue to increase and disparity between jack ups and semisubmersibles will disappear.

The U.K. onshore scene is not as robust.

Capel's forecast of 15-17 exploratory and appraisal wells is unchanged from last year and probably will continue at about the same level in 1991