Arenite Petroleum Limited is delighted to announce that it has provisionally been awarded a new licence covering two onshore blocks in the UK 14th Onshore Licensing Round, as announced by the Energy Minister on 17th December 2015. The new licence is located in North Yorkshire and covers National Grid blocks SE99a & TA09 to the north-west of Scarborough. This new licence is a strategic add to the Company’s asset base, in an area the company has targeted during previous offshore licence rounds.
Arenite was awarded the adjacent offshore block 41/24 in the Cleveland Basin on the 27th July 2015. Arenite acts as technical operator for this Promote Licence in a 50%:50% joint venture with Europa Oil and Gas Limited.
Arenite recognises that advances in drilling and well completion technologies could unlock the gas from the reservoir section encountered in the Cloughton-1 exploration well, drilled by Bow Valley in 1986 and could produce gas at commercial flow rates. The 4,000ft thick interval of interbedded Namurian organic-rich gas-mature shales and tight 10-70ft thick naturally fractured sandstones are proven in the well and previously flowed gas, albeit at non-commercial flow rates, some 29 years ago.
Mike Cooper, CEO, commented:
“Since the company’s formation in early 2014 we have been targeting the award of this acreage as we recognise huge reserves potential with proven gas and condensate in Triassic, Zechstein & Carboniferous strata on this onshore and the adjacent offshore acreage.
Arenite identified the opportunity and operated the licence application on behalf of a consortium, alongside Europa Oil & Gas Limited & Shale Petroleum Limited. This bidding group subsequently joined forces with Third Energy, Egdon Resources and Petrochor to further strengthen the licence application. From the outset we recognised the need to align with established onshore E&P companies whilst bringing the learnings from North American operating companies. We are delighted Third Energy are the operator as they have a proven track record of undertaking UK drilling and production operations with a safe and environmentally-responsible track record.
Now that the company has the assets we high-graded over the last two years through two licence round awards (offshore and then onshore) the Company will shortly be seeking the backing of new investors looking to be a part of Arenite’s growth story”.
Notes to Editors
Arenite Petroleum Limited is a privately-owned E&P company registered in Scotland and headquartered in Aberdeen. The company was formed in 2014 by a group of experienced oil and gas specialists with decades of experience in finding and developing UKCS & Overseas oil and gas fields. Arenite is focused on unlocking reserves in the Cleveland Basin of North Yorkshire and it’s offshore extension.
Gas has been discovered in three separate horizons within Arenite’s Cleveland Basin licence blocks.
Onshore: Blocks SE99a & TA09
The onshore Carboniferous gas discovery was proven by the Cloughton-1 well drilled by Bow Valley (1986). This discovery pre-dates the first producing Carboniferous gasfield in the Southern North Sea and a lot has been learned of these strata in the last 30 years. Indeed the O&G industry has developed numerous technologies to extract gas from tight low porosity sandstone formations such as those found in the Carboniferous. With over twenty stacked gas-bearing sands ranging in thickness from 10 to 70+ feet, over a 4,000+ foot thick sand & shale interbedded interval, there is potential for a commercial development, once a commercial flow rate is established.
Offshore: Block 41/24
The Maxwell gasfield was discovered in Permian Zechstein carbonates by Total with the drilling of offshore well 41/24a-1 in 1969. Two follow-up appraisal wells (41/24a-2 Total, 1981 and 41/24-3 Conoco, 1992) were drilled into this fractured Zechstein carbonate reservoir. The maximum flow rate achieved on test was 34 million cubic feet of gas per day and 1280 barrels of condensate per day. A new fault-compartmentalised interpretation of the reservoir based on reprocessed seismic coupled with advances in drilling and completion techniques in the last 23 years point to potential gas reserves which Arenite hope to confirm with an appraisal well, following a successful farmout process.
Well 41/24-3 also encountered nitrogen-rich heavy-gas in the Triassic Bunter Sandstone. New seismic will be required to delineate this accumulation and there may be potential synergies with fertiliser producers in the Cleveland area. Further appraisal drilling will be required to test the feasibility of commercialising the Bunter gas accumulation. All future wells targeting deeper Zechstein & Carboniferous gas would penetrate the shallower Bunter interval.
The composition of the onshore Joint Venture is:
Third Energy UK Gas Limited 20.0% (Operator)
Egdon Resources U.K. Limited 15.0%
Petrochor Energy UK Limited 15.0%
Europa Oil & Gas Limited 17.5%
Shale Petroleum (UK) Limited 17.5%
Arenite Petroleum Limited 5.0%
Parties may register interest via the website www.arenitepetroleum.com or emailing email@example.com for further information. The Company seeks investors to fund the further exploration, appraisal and potential future development within our licences and establish new acreage in proven hydrocarbon basins. Arenite offers an exciting opportunity to be in at the early stages of a new E&P company holding equity in proven and significant onshore and near-offshore gas discoveries.