Oil exploration firm in 'largest undeveloped discovery' on the UK Continental Shelf
An oil exploration firm has found what is believed to be the largest undeveloped discovery on the UK Continental Shelf.
Hurricane Energy said there could be one billion barrels of oil in the “Halifax” well in the Greater Lancaster Area, (GLA) 60 miles west of Shetland.
The company found oil in two wells about 19 miles apart and believes they are part of the same extensive field. It hopes to begin production in 2019.
Dr Robert Trice, Hurricane’s chief executive, said it was an exciting discovery, adding: “We believe that the GLA is a single hydrocarbon accumulation, making it the largest undeveloped discovery on the UK Continental Shelf.
“Given the positive well results, the Halifax well has been suspended to provide the company the option to return to undertake further testing as well as provide the option to deepen the well and thereby establish a definitive oil water contact.”
The discovery is significantly larger than the average find in recent years, which has been about 25 million barrels, but it is still a fifth of the size of the Forties field, which contains about five billion barrels, with around two billion already recovered.
Deirdre Michie, chief executive of Oil and Gas UK, said it was welcome news, adding that the find “demonstrates the significant remaining potential” of the UK Continental Shelf (UKCS).
She said: “Signs of optimism, mainly led by exploration and production companies, are returning to the basin, which has worked hard to reduce its costs and improve efficiency.
“However, the UKCS needs fresh investment so it can capitalise on its potential, whether that be from new geological plays, or from enhanced recovery from existing fields.
“There are still up to 20bn barrels of oil and gas to go after in the UKCS and we believe that makes the basin a very positive investment prospect indeed.”
Maree Todd, the Nationalist MSP for the Highlands and Islands, said it was a welcome reminder of the “huge untapped potential” in Scottish waters.
She also accused the UK Government of a “shameful” lack of action amid calls for it to offer more support to the industry.
