First Oil From Sycamore
12 Março 2003 - 4:30AM
UK Regulatory
RNS Number:5976I
Venture Production PLC
12 March 2003
12th March 2003
VENTURE PRODUCTION plc
("Venture", "the Company" or "the Group")
Venture Announces First Oil from Sycamore
Venture Production plc, the Aberdeen based UK independent oil and gas production
company, together with Marubeni Oil & Gas (U.K.), today announces that its
Sycamore field entered production on 6th March 2003 at a rate of 27,000 barrels
of oil per day, materially above initial project expectations.
As a result of the successful development of Sycamore, Venture's net production
is expected to rise from an average of 9,000 barrels of oil equivalent ("boe")
per day to over 20,000 boe per day, by the end of Q2 2003.
Following the rejuvenation of the nearby Larch field in mid-2001, Sycamore
represents the second successful development project and third oilfield that
Venture operates on Block 16/12a (the "Trees" area).
Commencing production from two wells in the Central part of the field marks the
completion of the first phase of the sub-sea development of Sycamore, a project
that resulted from a major geological and geophysical re-interpretation of the
area carried out by Venture in 2001. The second and third phases, which are
planned for 2003, will see the addition of another producer in the Northern area
and up to two water injection wells to support the Central and Northern
producers. Depending upon the success of the second and third phases, the
Southern area may also be developed in the near future. Total gross recoverable
liquid reserves are estimated to be 24 million boe. As operator, Venture holds
a 64.51% interest in the field with Marubeni Oil & Gas (U.K.) holding the
remaining 35.49%.
From the outset, the Venture board set an aggressive development timetable for
Sycamore with start-up targeted for 2Q 2003. Management of the project risk
associated with what was the first installation of a major North Sea pipeline
bundle completed during the winter months was central to the programme. By
gaining early alignment with partners and key contractors, Venture was able to
execute the project on budget yet also deliver first oil one month earlier than
originally planned.
The pipeline and controls bundle connecting the new sub-sea Sycamore manifold to
the existing Birch manifold was manufactured by Subsea 7 at its Wick site in
Scotland. It was towed out to Block 16/12a in January 2003 and installed during
February.
Commenting on the news, Bruce Dingwall, Venture's Chief Executive said:
"Having successfully completed the Larch field redevelopment in 2001, the
rejuvenation of the second 'Trees' asset is more than simply a key milestone for
Venture. It also sets another North Sea benchmark for the use of existing
infrastructure to rehabilitate 'stranded' assets. As well as doubling Venture's
current production, the hook-up of Sycamore represents a further powerful
example of how effectively North Sea participants can work together to extend
field life, increase reserves and increase production. The more projects like
Sycamore that get done the better for everyone with an interest in the North
Sea.
"Venture's internal project team and their counterparts at Subsea 7 have done an
excellent job in delivering the project ahead of schedule and on budget. We
look forward to replicating this success across our portfolio of development
opportunities."
ENDS
Contact:
Bruce Dingwall, Chief Executive 01224 619000
Jon Murphy, Chief Operating Officer
Patrick Handley, Brunswick 0207 404 5959
Eilis Murphy, Brunswick
Tricia Parish, Brunswick
Notes to Editors:
* The Sycamore field is located in UKCS Block 16/12a (the "Trees" area), 260km
miles north east of Aberdeen, in 111 metres of water. Other existing
fields on the Block are Birch and Larch, both of which are subsea developments
tied-back to Marathon's Brae 'A' platform, from where oil enters BP's Forties
Pipeline System.
* Venture acquired Block 16/12a in April 2000 and by May 2001 had successfully
redeveloped the Larch field, increasing oil production from zero to
14,000 barrels of oil per day ('bopd'). The new geological model employed by
Venture subsequently confirmed the existence of the Sycamore oil field in the
southern part of the Block - previously, it had been mapped as the separate
North Pine, Pine and Elm accumulations.
* UK government approval to develop Sycamore was granted in May 2002. The
development programme comprises three Phases, which are expected to result in
up to three oil production wells and two water injection wells being drilled
and completed by end 2004. The wells, all of which will be subsea, will tie-in
to the new Sycamore manifold on the seabed that is itself now tied-in to the
existing Birch/Larch pipeline system via the new 4.5 km pipeline and controls
bundle manufactured by Subsea 7.
* Total development costs for Sycamore are expected to be approximately #90
million.
* The Sycamore oil field is jointly owned by Venture (64.51%) and Marubeni Oil
& Gas (U.K.) Limited (35.49%). The decision to develop Sycamore was taken
by the partners following the successful re-development by Venture of the
nearby Larch field in 2001.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCUARBROWROAAR