I'moptimistic we'll see good news on Stella...oil
GreaterStella Area including Hurricane and Harrier
Background
TheCorporation acquired a 66.66% interest in the Stella discovery in block30/6 in August 2008. In 2009, the
Corporation completed severalcommercial transactions such that Ithaca was carried for a portion ofwell costs and will hold a 50.33% equity interest subsequent to thecompletion of the Stella appraisal well. Ithaca is the operator of theacreage.
The Stella field lies in the Central North Sea, 15 kmnorthwest of the Joanne field and was discovered in 1979 by
well30/6-2 which encountered gas and condensate throughout a 25 ft sectionof Paleocene Andrew sand. Oil was also observed in the EkofiskChalk reservoir. The accumulation lies within closure of asalt induced anticline covering 22 km2
.
Subsequent appraisalwells 30/6-3 & 3Z were drilled in 1996, up-dip from the discoverywell and on the crest of the structure. The 3Z well achieved flow ratesof 2800 bopd and 22.75 mmscf/day of gas from theAndrew sands. In 2005 Maersk, the operator, drilled well 30/06-5 andsidetracks to further appraise the Chalk and Andrew reservoirs. Gascondensate bearing Andrew and oil bearing Chalk were encountered.The sidetrack well, 30/6-5Y, tested at a maximum rate of 17 mmscf/d and3000 bopd in the Andrew sands. Wells to date have notencountered a hydrocarbon/water contact.
An appraisal wellcommenced drilling in the first quarter of 2010, operated by Ithaca.
Furthercommercial potential exists for Stella to act as a hub for existingundeveloped and future exploration
discoveries in the immediatelyadjacent acreage.
Development
Stella is a rich gas condensatefield already penetrated by 5 wells, 2 of which have been drill stemtested. An
appraisal well is being drilled down flank in thefield. The objectives of the well are: (a) confirm Ithaca's assessmentof the in-place hydrocarbons; (b) understand changes in composition ofhydrocarbons with depth; and (c) verify the distribution and quality ofthe reservoir. Information acquired from the appraisal well will beused to determine and define the development of the accumulation. Theappraisal well spudded on February 19, 2010 and is scheduled to have anoverall program duration of approximately 79 days.
Sproule haveestimated the Corporation’s net reserves in Stella (Andrew and Chalkreservoirs combined) to be:
Category Condensate (mmbbls) Gas(Bcf)
Proved 1.200 20.919
Probable 1.312 17.644
Possible3.154 46.904
Total 5.666 85.467
Harrier
The Corporation acquired a 66.66% interest in the Harrierdiscovery in block 30/6 in August 2008. Included in the
commercialtransactions of Stella, Ithaca will retain a 50.33% interest in thediscovery subsequent to the completion of the Stella well.
TheHarrier discovery of gas in the Ekofisk and Tor Chalk formations liesapproximately 10 kilometres
immediately south of the Stella field.No further appraisal of Harrier is planned at this time. Subject to theresults of the Stella appraisal well, a fast track plan will beexecuted to develop Harrier immediately after Stella with tieback toStella subsea facilities.
Sproule have estimated the Corporation’snet reserves in Harrier to be:
Category Condensate (mmbbls) Gas(Bcf)
Proved 0.717 18.892
Probable 1.322 39.005
Possible2.998 82.345
Total 5.218 145.294
Hurricane
TheCorporation acquired a 50% interest in the Hurricane discovery in block29/10b through the UKCS 25th
Licensing Round and subsequently,through a commercial transaction, gained 100% interest in the licenceand is operator.
The Hurricane discovery of light oil in thePalaeocene Rogaland formation lies 10 kilometres immediately west of theStella field and is another undeveloped discovery in Ithaca's GreaterStella 'Core' Area. The development of Hurricane will benefit fromIthaca's other activities in the area, namely the Stella and Harrierdevelopments.
Sproule have estimated the Corporation’s net reservesin Hurricane to be:
Category Oil (mmbbls) Gas (Bcf)
Proved --
Probable 4.100 4.764
Possible 6.900 8.018
Total 11.00012.782
Courtesy of Crucibe on IV