Frontier Exploration Licence 3/04
The Company currently holds a 26.846% working interest in FEL 3/04 with Eni acting as operator. The equity interests in FEL 3/04 are Eni (36.913%), Repsol (33.557%), Providence (26.846%) and Sosina (2.684%).
The licence lies in the southern Porcupine Basin, c. 200 km off the south-west coast and in c. 1,500 m water depth.
FEL 3/04 was originally awarded to the Company (80%, operator) and partner Sosina (20%) in 2004.
In 2006, the Company agreed a farm-in with ExxonMobil, whereby they assumed an 80% working interest in return for a pre-agreed investment programme. This transaction reduced the Company’s working interest to 16% and Sosina’s to 4%. In 2006, the partnership acquired c.1,500 line km of 2D seismic reflection profile data over FEL 3/04.
In 2009, Eni farmed into FEL 3/04 for a 40% working interest, resulting in revised working interests of Providence (16%), ExxonMobil (40%), Eni (40%) and Sosina (4%). Separately, ExxonMobil assumed operatorship and moved the partnership to the next phase of the licence by formally making a well commitment.
In 2011, Repsol farmed in for a 25.0% working interest, thereby changing the working interests to ExxonMobil (27.5%), Eni (27.5%), Repsol (25%), Providence (16%) and Sosina (4%). In 2013, Atlantic Petroleum farmed into the licence resulting in final pre-drill working interests of ExxonMobil (25.5%), Eni (27.5%), Repsol (25%), Providence (16%), Atlantic (4%) and Sosina (2%).
Drilling operations on the 44/23-1 Dunquin North exploration well, situated on the northern flank of a c. 700 km2 intra-basinal ridge system, were completed in July 2013 reaching a final total depth of c. 5,000 m MDBRT. The primary Lower Cretaceous Dunquin North prospect was encountered within the pre-drill depth prognosis and comprised a thick over-pressured carbonate reservoir system. The well was terminated having drilled a total thickness of c. 250 m of massive porous carbonate reservoir. Preliminary well analysis indicated the reservoir to be water bearing, however, petrophysical log interpretation, elevated gas levels, together with oil shows in sidewall cores over the upper section of the reservoir, suggested the presence of a residual oil column.
In 2014, the results of the post well analysis from the Dunquin North exploration well were announced which confirmed that the prospect contained at least a c. 44m residual oil column in a thick, over-pressured, high porosity carbonate reservoir system that was breached, with pre-breach oil STOIIP volumetrics of c. 1.2 BBOE, and with a current estimated residual oil STOIIP of c. 600 MMBO.
ExxonMobil, the then operator, also carried out an assessment of the other exploration prospect contained in FEL 3/04, Dunquin South, which identified un-risked hydrocarbons in place of 3.475 BBOE (Pmean), with a recoverable estimate of 1.389 BBOE (Pmean).
In July 2015, the Company announced that it would acquire Atlantic’s 4% working interest for a nominal consideration.
In March 2016, the Company announced that Dunquin North post-well technical studies were continuing with a focus on the future potential of the adjacent Dunquin South exploration prospect. Additional stacked potential was also assessed in the underlying c.700 km2 Dunquin Ridge. A re-analysis of the 44/23-1 Dunquin North well data suggests that the original hydrocarbon column may have been significantly greater than the previously reported 44m and may have covered the entire 250m drilled interval. This new interpretation has significant read through implications for the Dunquin South prospect and the underlying Dunquin Ridge.
Following the announcement in August 2016 of ExxonMobil’s withdrawal from FEL 3/04, the remaining partners in FEL 3/04 increased their equity interests in the licence through a pro-rata distribution of ExxonMobil’s equity interest with Eni assuming the role of operator.
In April 2017, the Company announced that the Dunquin JV partnership had agreed to licence 1,800 km2 of 3D data over FEL 3/04 to be acquired as part of a multi-client seismic survey during summer 2017. The purpose of this 3D is to distinguish between the breached Dunquin North structure and the undrilled Dunquin South structure.
This data is currently being assessed by the partnership.