CLNR, the natural resources investing company with gas assets in the Southern North Sea, is pleased to provide an operational update on its 100% owned asset P2248, located in the Southern North Sea.
· Further analysis of seismic data has further de-risked the Bunter Sandstone Prospects potentially unlocking a new regional Bunter Sandstone play with significant resource potential at low cost
· Key risk of the Cadence Prospect has been further addressed with revised fault interpretation resulting in a significantly more robust structure with two potentially independent, lower risk compartments within the larger Cadence prospect now clearly identified
· Farm-out process for P2248 on-going with encouraging level of traffic through the dataroom with targeted closing of the dataroom during the summer
Commenting CNR's Chairman and Chief Executive Algy Cluff said:
"The on-going technical work continues to enhance the prospects identified by the Company and directly feeds into the on-going farm-out process. The interest in the dataroom to date has been very encouraging, especially in the context of other regional activities which include a deep Carboniferous exploration well currently being drilled by BP to the south of our licences, the results of which we, and the industry as a whole, are eagerly anticipating. These regional activities could have a significant positive impact on the farm-out process and we continue to monitor their progress carefully."
P2248 Bunter Sandstone Prospects
As previously announced, CLNR's assessment of the 3D seismic data identified three large Bunter Sandstone prospects with combined P50 Prospective Resources in excess of 800 BCF, as confirmed in the Competent Persons Report (CPR) published in October 2016.
Further analysis of the seismic data, including a pre-stack inversion, has confirmed that each prospect has an associated direct hydrocarbon indicator (DHI) in the form of an amplitude versus offset (AVO) response which are analogous to the adjacent Bunter Sandstone fields, including Esmond (which produced 313 BCF between 1985 and 1996) and the Furasta discovery (tested at 19.6 mmscf/day), and are clearly distinct from the Class I AVO anomalies associated with the failed Bunter exploration wells that have been drilled historically by third parties.
The Board believes that these positive AVO responses further de-risk the three Bunter Sandstone prospects located on CLNR's licence and potentially unlocks a new regional Bunter Sandstone play with significant resource potential accessible at low cost given the shallow water environment and high quality reservoir.
P2248 Cadence Carboniferous Prospect
The key risk associated with the 929 BCF (P50 Prospective Resources) Cadence Carboniferous prospect, as identified in the Company's CPR, was the sealing potential of the main bounding fault. To further address this risk a further detailed structural interpretation focusing on the bounding fault and its sealing potential has now been completed, with the revised fault interpretation resulting in a significantly more robust structure and two potentially independent, lower risk compartments within the larger Cadence prospect have now been clearly identified. The results are particularly encouraging at the Scremerston Formation level where fault seal analysis has confirmed the potential for hydrocarbon column heights in the Scremerston Formation of several hundred metres.
The farm-out process in respect of P2248 and P2252 is currently on-going and the Company has been encouraged by the level of traffic through the dataroom. The fault seal analysis will be circulated, along with the results of the AVO analysis, to the dataroom participants with the aim of closing the dataroom during the summer.