LGX Oil + Gas Inc ROAOF

Shelly Field Development

[MaxPowerJr]

Shelly Development Details BigBad Oil, sent this Oilexco development proposal which is listed on Oilexco's websit Toatl field estimated size is 20 million barrels recoverable Rev: 01 Shelley Field Development Environmental Statement STANDARD INFORMATION SHEET Project Name Shelley Field Development DTI Project Reference No. D/3578/2007 Type of Project Field development Undertaker Name Oilexco North Sea Ltd Undertaker Address Balmoral House, 74 Carden Place, Aberdeen, AB10 1UL Licences/Owners Oilexco North Sea Ltd – 100% Short Description Oilexco is planning to develop the Shelley field located in Block 22/2b in the central North Sea, approximately 192 kilometres east of Fraserburgh, Scotland. The development will comprise two subsea production wells (and possibly one future production well) and one water disposal/injection well located at the Shelley Drill Centre. The production wells will be tied back to a production manifold and onwards through a 2.2 kilometre 8" pipeline to the Sevan 300 FPSO known as the Sevan Voyageur (similar to the Hummingbird FPSO to be installed at the Chestnut Field). A 2.2 kilometre, 8 inch water disposal/injection pipeline will be installed from the Sevan Voyageur and tied directly into the respective tree at the Shelley Drill Centre. There will also be an electro hydraulic control umbilical connecting the Sevan Voyageur to the production manifold at the Shelley Drill Centre. Anticipated Commencement of Works May 2008 Previously Submitted Environmental Documents PON15B for the Shelley (22/2b-S) appraisal well (DTI Ref. W/3645/2007) Significant Environmental Impacts Identified None Statement Prepared By Oilexco North Sea Ltd in association with RBA Ltd. Project Overview The Shelley reservoir will be developed by means of two subsea production wells. A spareconnection will also be provided to tie in additional wells if required at some future date. Production will be assisted by downhole Electrical Submersible Pumps. A water disposal wellwill be drilled to allow re-injection of produced water. The production wells will be tied back, viaa single 2.2 kilometre, 8 inch pipeline, to the Sevan Voyageur, a cylindrical type Sevan 300 FPSO. A 2.2 kilometre, 8 inch water injection pipeline and a control umbilical will also be installed fromthe FPSO to the drill centre. The Shelley wells and infrastructure will be monitored, controlledand operated from the Sevan Voyageur FPSO. The Sevan Voyageur FPSO will be on a lease contract from Sevan Marine AS, who will remainthe owner of the FPSO. The subsea facilities and wells will be owned by Oilexco. Estimated total recoverable reserves for the field are 20 million barrels of oil. Oil from the Shelleydevelopment field will be separated from gas and water on the FPSO. The oil will then be stored inthe FPSO’s cargo tanks, and transferred to a shuttle tanker for transport onshore to a refinery. To date a single appraisal well (22/2b-S) has been drilled at the Shelley location (Latitude 57° 53'00.713" North, Longitude 01° 23' 42.633" East).The Shelley production wells will be drilled from the Sedco 712 semi-submersible rig.Subject to necessary consents and approvals, Oilexco intends to initiate the drilling programme inQ2/Q3 2008. Prior to decommissioning Oilexco will undertake a detailed comparative assessment of allavailable recommended abandonment approach. The comparative impacts; effects on other usersof the sea (shipping and fishing); and costs shall be considered in this assessment. An EIA of theproposed decommissioning method will be undertaken before abandonment plans are finalised.Subject to necessary consents and approvals, Oilexco intends to initiate the drilling programme inQ2/Q3 2008. Prior to decommissioning Oilexco will undertake a detailed comparative assessment of allavailable recommended abandonment approach. The comparative impacts; effects on other usersof the sea (shipping and fishing); and costs shall be considered in this assessment. An EIA of theproposed decommissioning method will be undertaken before abandonment plans are finalised.