Brasse's growth halts as Faroe's Rungne well disappoints

Faroe announced in November that the Rungne well came in disappointing with only sub-commercial levels of gas found. Although encountering hydrocarbons, the estimated volumes of 12-57bcf gas and 0.5-3.9mmboe condensates will mean the discovery is non-commercial on a standalone basis. Nevertheless it could form a future tie-back to Brage or Oseberg.

Faroe's exploration programme continues with Brasse East which could be another chance for Faroe to grow the Brasse Area prior to taking FID. Faroe is currently going through concept selection for the field with two potential hosts: Brage or Oseberg.

Related posts:

• Brasse - Brage's younger sibling
• Brasse continues to grow
• Brasse flow test shows promising results

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Brasse continues to grow

Faroe has successfully completed the Brasse sidetrack appraisal well 31/7-2A. Very high quality reservoir sands were encountered and the well penetrated an 18m oil and a 4m gas column. Recoverable resource estimates have been increased to 56-92 mmboe (from 43-80 mmboe).

The sidetrack was drilled to a total depth of 2,275m. It is located 1km to the west of the appraisal well (31/7-2) and 2.4km to the south of the main discovery well (31/7-1). The appraisal well will now be plugged and abandoned as planned.

An extensive data acquisition programme was carried out in the 31/7-2A sidetrack, including the cutting of cores together with a full suite of wireline logs and fluid samples. Pressure data also indicates good communication within the reservoir. The data supported an increase in the recoverable resources estimates.

Faroe is now moving the development of the field forward with the aim of fast tracking the development given its robust economics at low commodity prices, which could see first oil in 2020/21.

Extensive feasibility studies have been carried out focussing on a sub-sea development tied-back to one of the hosts in the nearby area (either Brage or Oseberg Sør). This work is ongoing and external studies have already been undertaken for the Subsea Production System (SPS),  flow assurance and pipeline and marine work.  Technical and commercial activities related to the potential hosts were formally initiated in Q4 2016.

The preliminary development plan envisages three to six production wells and an optional water injection well for pressure support.  Initial flow rates from the prolific Brasse reservoir are expected to be higher than previously thought, with predicted delivery rates above 30mboepd. The early estimates of the cost of this development is c.USD550 million mid-case for a scenario consisting of four wells and one subsea template.

Faroe now plans to finalise the concept selection with subsequent submission of a Plan for Development and Operations (PDO) to the authorities in 2018.

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Brasse flow test shows promising results

Brasse was discovered in June 2016 and following a side-track, recoverable resources were estimated at 43 – 80mmboe. On 3rd July, a little after a year the original discovery was made, Faroe has reported successful flow testing achieving a maximum rate of 6,187mboepd. An upcoming side-track is planned, following which the resource estimates may be updated.

An extensive data acquisition programme was undertaken including a Drill Stem Test, logging, core and fluid sampling. The well showed excellent permeability, similar crude quality to the nearby Brage field (36-37˚ API), no undesirable components and no sand or water.

The results are positive for the future of the field and should help Faroe and its partner (each with 50% WI) in considering the development of the field. Brasse lies c.15km from both the Brage and Oseberg Sør fields and will be developed as a tie-back to one of these. The results could also provide valuable data and validation to support a farm-out which could help accelerate the development.

Source: Faroe June 2016 Investor Presentation

Source: Faroe June 2016 Investor Presentation

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Brasse - Brage's younger sibling

On 11^th July, Faroe announced the completion of a successful side-track appraisal well on the Brasse discovery in PL740 (50% WI) in the Norwegian North Sea and revised volume estimates for the discovery.

The objective of the Brasse side-track well was to appraise the south-eastern part of the structure previously identified by the main discovery well. The side-track reached a depth of c.2,530m and encountered a 25m gross oil column and a 6m gross gas column. The side-tack encountered oil and gas in good quality Jurassic reservoir sandstones, similar to those seen in the main well.

Total gross volumes of recoverable hydrocarbons are now estimated to be 28 – 54mmbbl of oil and 89 – 158bcf gas (43 – 80mmboe in aggregate, which compares with pre-drill estimate of 14 – 33mmbbl). The reservoir is of good quality and believed to be analogous to the effective reservoir at the Brage producing oil field in which Faroe has a 14.3% interest.

The Brasse discovery is located within tie-back distance to existing infrastructure with available capacity. It is c.15km to the south of the Brage field platform, c.15km east of the Oseberg Sør field platform, and c.15km to the south east of the Oseberg field platform. Faroe and its partner, Point Resources (50% WI), will now begin assessing options for monetising this discovery.

Brasse area map

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