Sale of 100% interest in the Cotton gas Field (formerly “Carna”).
Speedwell Energy Limited (“Speedwell” or “the Company”) today announces it has signed a Sales and Purchase Agreement (“SPA”) to sell 100% of the equity of Speedwell Energy (1) Limited, the holder of 100% interest in the Cotton gas Field Licence P2341 in the UK sector of the Southern North Sea to RockRose Energy Plc. The transaction is subject to the usual regulatory approvals.
The field was discovered in 2009 by well 43/21b-5Z which encountered a gas column of up to 1,260 feet over six gas bearing sandstone units. Cotton contains recoverable gas resources of 97Bcf (16.7mmboe) and has the potential to produce at a peak rate of up to 70mmscf/d (12,000 boepd) from two horizontal development wells.
Speedwell has prepared a draft Field Development Plan (“FDP”) for submission to the OGA. Speedwell has been working with its key contractors on the development solution for Cotton and engagement with both them and the owners of the export infrastructure anticipated to be used is on-going. Prior to taking Final Investment Decision ("FID"), RockRose Energy will carry out further studies to ensure that both the subsurface delivery and the project economics are robust, particularly given the current challenging gas price.
The Cotton field lies 100 Km east of Scarborough between the Kilmar and Garrow fields in both of which RockRose holds a 15% interest.
Richard T Strachan, CEO of Speedwell Energy Limited (pictured, right) said: “Having identified the potential in Cotton some three years ago which was a relinquished asset going nowhere to one now where we have a draft Field Development Plan and a delivery team in place capable of bringing Cotton through to First Gas we are delighted that RockRose will now take over Cotton and are looking at how to potentially take it forward and we wish them all the best as they do so.”
Andrew Austin, Executive Charmain of RockRose said: “This acquisition gives RockRose the option of a significant amount of production and reserves in an area of the Southern North Sea Gas Basin in which we already have other producing assets. We look forward to carrying out further evaluation of the discovery prior to committing to FID.”
Speedwell is pleased to announce that the OGA have approved the name change of its 100% owned gas discovery in block 43/21b to Cotton.
Speedwell’s field naming strategy is linked to its connections to the North East of Scotland fishing community. With our forefathers being fishermen and boat owners here in the North East of Scotland we have chosen to name our fields after the by-names of North East fishing villages and harbours.
Richard Strachan the CEO of Speedwell and subsurface director Jim Ritchie’s father both came from a small North East fishing village called Inverallochy. Speedwell has chosen Cotton the by-name for Inverallochy, to be the name of its first field.
We are really pleased here at Speedwell that the OGA have approved the name change to Cotton so keeping our links to the North East of Scotland fishing community. Our company name Speedwell comes from the name of several family boats from lug sail through to a steamer called Speedwell.
We are following in our forefather’s footsteps but this time searching for oil and gas as they searched for herring.
The team here is now fully focused on getting the Cotton field developed and delivering gas to market in a safe, cost efficient and timely manner.
Speedwell Energy is pleased to confirm it has successfully secured two blocks in the UK Continental Shelf (UKCS) in the 2016 Supplementary Offshore Licensing Round, which was announced this week.
The firm, which is headquartered in Aberdeen, was awarded Blocks 43/21b (Carna) and 44/16b (Copernicus) in the southern gas basin, located 62 miles east and 108 miles east of Scarborough respectively.
The Oil and Gas Authority (OGA) has offered for award 12 licences to 10 companies in the recent licensing round, which closed for applications in March this year. It is the first licences secured by Speedwell Energy, which was launched in 2013, and both blocks are relinquished discoveries. Speedwell Energy has a team of specialists in place with the necessary drilling, production and development experience, to support the company as it moves forward to development. Work on the projects will commence immediately. CEO of Speedwell Energy, Richard Strachan, said: “We are delighted to secure these blocks in the recent licensing round and we are fully manned up with the key skills and expertise to move forward into the development phase swiftly.
“Identifying and acquiring stranded gas assets and near-term developments that we can develop in a collaborative, cost efficient manner is our core business and we are eager to move onto this exciting stage with the business.”
Speedwell Energy’s business model is aligned with MER UK and the recommendations of the Wood Report, working towards maximising the remaining hydrocarbon reserves of the UKCS.