The offshore oil and gas sector is a major UK industrial success story. Since production started in 1967, the sector has produced around 45 billion barrels of oil equivalent from the UK’s Continental Shelf (UKCS)1. This production has maintained the country’s energy security, while keeping homes warm, the country moving and creating hundreds of thousands of high-quality jobs across the UK.

However the UK government recognises that climate change represents an existential threat to the planet, so in response has set a world-leading net zero target, the first major economy to do so by statute.

The North Sea Transition Deal, which was announced in March 2021, supports the oil and gas industry’s transition to clean, green energy and a secure future for high-skilled oil and gas workers and the supply chain. The North Sea Transition Deal recognises that the oil and gas industry will have a critical role in maintaining the UK’s energy security through the transition to net zero carbon by 2050. Domestically produced gas still met approximately 46 percent of the country’s supply of gas in 2019 and the Climate Change Committee forecasts a continued need for fossil fuels for years to come.

In recognition of the need for transitional fuels in the UK, Spark New Energies has secured access to acreage in the highly attractive offshore petroleum region known as the West of Shetland. This region is recognised for its significant current oil and gas production, with the largest prospective resource potential in the UK 2 (4.7 billion barrels of oil equivalent).

The primary asset in the West of Shetland is Licence P2593, in which the Company holds 50% equity in a joint venture partnership with Siccar Point Energy (50%), who operate the licence on behalf of the joint venture. Siccar Point Energy is a large oil and gas company based in the UK which has acquired both operated and non-operated opportunities on the UK Continental Shelf, including interests in four of the largest UK oil and gas fields by remaining reserves. Siccar Point Energy brings the relevant expertise required for the joint venture to undertake exploration on the West Shetland Asset.

Figure 1: Map of the acreage position in the West of Shetlands

Tuck Gas Project

The Tuck Gas Project is an appraisal opportunity of a gas accumulation proven by Well 206/11-1 (1977, Elf), within Upper Cretaceous sandstones on the flank of the Rona Ridge. The region is a prolific hydrocarbon province with significant oil and gas production. Gas production of greater than 40 MMscf/d from similar-aged reservoirs is ongoing at Total’s Edradour Field approximately 50 km to the north-east. Total is also in advanced planning to develop the nearby Glendronach gas accumulation. The gas is evacuated via Total’s Laggan-Tormore pipeline.

A significant 3D seismic amplitude anomaly is associated with the reservoir interval at the Tuck Gas Project to the south-west of the 206/11-1 discovery well. That well flowed gas to surface. Well 205/15-1 (2018, CNOOC) drilled through the same reservoir interval (while targeting a deeper Jurassic reservoir) and encountered a 45m thick sand approximately 3 km to the north-east of the Tuck Gas Project anomaly. Good gas shows were encountered at the top of these sandstones despite being penetrated more than 500 m down-dip from of the crest of the trap.

A 3D seismic inversion study was completed over the Tuck Gas Project in Q4 2021 and concluded that the observed 53 km2 seismic anomaly is consistent with thick, porous sandstones with a high probability of gas fill. The downdip extent of the high probability gas sands identified by the inversion study is structurally conformant which further increases confidence in the presence of gas in the trap.

The joint venture will be concluding the technical evaluation of the Tuck Gas Project during 2022 prior to a decision to commit to drilling.

Figure 2: Tuck 3D perspective – Seismic inversion high gas probability area in red located adjacent to Well 206/11-1 which flowed gas

Figure 3: Tuck 3D seismic line showing the significant seismic amplitude anomaly modelled to be caused by the presence of thick gas sands

Figure 4: Tuck 3D seismic inversion line showing the modelled high probability gas sands in yellow

Boulmer Project

The Boulmer Prospect is a combination structural-truncation trap containing Devonian reservoir sandstones located in the centre of licence P.2593. The prospect is 5 km to the south-west of the Clair Field (operated by BP). Clair is one of the largest oil fields on the UK Continental Shelf with a footprint of 220 km2 and an oil column of over 700m. The field contains in excess of seven billion barrels of oil within the same Devonian reservoir and to date approximately one billion barrels of reserves have been developed in two phases. BP is currently preparing to make a Final Investment Decision on a further phase of development of the field.

The Boulmer Prospect has been mapped on high quality 3D seismic data as a robust three-way structural closure. The Devonian reservoir sequence onlaps the Lewisian basement topography and is truncated to the south-west by the near Base Cretaceous Unconformity. The absence of the Devonian package to the south-west is confirmed by Well 205/20-1 which penetrated Jurassic sediments sitting directly on the Pre-Cambian basement. The basement, which forms the sideseal for the trap, is extremely tight with no open fractures in core cut in 205/20-1. Jurassic and Cretaceous shales form the topseal for the prospect.

The joint venture will be concluding the technical evaluation of the Boulmer Prospect during 2022 prior to a decision to commit to drilling.

Figure 5: Boulmer Prospect 3D seismic line and structure map