E&P Highlights: Feb. 10, 2025

From the restart of production from an old field in the U.K. to a geothermal collaboration, below is a compilation of the latest headlines in the E&P space.

Activity

Falcon Completes Shenandoah Stimulation in Australia

Falcon Oil & Gas Ltd. has completed the Shenandoah S2-2H ST1 stimulation in the Beetaloo Sub-basin, Northern Territory, Australia, with Falcon Oil & Gas Australia Ltd.’s joint venture partner, Tamboran (B2) Pty Ltd.

The partners completed 35 stages across the 1,671-m (5,483-ft) horizontal section of the Amungee Member B-shale with modern stimulation equipment from Liberty Energy.

The SS-2H ST1 well will be completed ahead of clean out activities and the commencement of initial flowback and extended production testing.

Promising Results from Pulsar Helium Appraisal Well in Minnesota

Pulsar Helium Inc. said the findings from its recently completed Jetstream 2 appraisal well in Minnesota may become “the most significant new primary helium discovery in North America.”

The Jetstream 2 appraisal well at Pulsar’s flagship Topaz Project reached total depth of 5,638 ft on Feb. 1, penetrating the entire interpreted helium-bearing interval. It encountered elevated helium values over a gross vertical thickness of 3,178 ft with samples containing up to 3.5% of helium identified, despite dilution from atmospheric air due to the rotary air drilling method used. Actual helium concentration is probably higher than the measured 3.5%; samples are being sent to a laboratory for analysis.

The company plans to collect more data from the Jetstream 1 and 2 wells in February and March, using video, spectroscopy, pressure and flow testing. That data will go to an independent resource estimator.

“The newly identified gas shows and highly encouraging helium readings give us great confidence for this being the most significant new primary helium discovery in North America,” CEO Thomas Abraham-James said. “We now move into the all-important testing phase and I look forward to keeping the market updated with results as they arrive."

Shell Restarts Production from Penguins Field in U.K. North Sea

Shell has restarted production at the Penguins Field in the U.K. North Sea with a modern FPSO facility. Shell operates the FPSO and owns 50%; NEO Energy owns the other 50%.

The FPSO replaces the Brent Charlie platform, which ceased production in 2021 and is being decommissioned. The new FPSO will have about 30% lower operational emissions compared with Brent Charlie and is expected to extend the life of the Penguins Field by up to 20 years, Shell said in a Feb. 4 press release.

Peak production is estimated at 45,000 boe/d. The field has an estimated discovered recoverable resource volume of approximately 100 MMboe. Penguins will also produce enough gas to heat around 700,000 U.K. homes per year.

The redevelopment of the field has involved drilling more wells, which are tied back to the new FPSO. The field, discovered in 1974, is about 150 miles northeast of the Shetland Islands in 541 ft of water depth. The field produced oil and gas from 2003 to 2021.

CNOOC Starts Production at Bozhong Project

CNOOC Ltd. announced that Bozhong 26-6 Oilfield Development Project (Phase I) has commenced production. The project is in central Bohai Bay in China, with an average water depth of approximately 20 m.

The main production facilities include a new central processing platform and an unmanned wellhead platform. A total of 33 development wells are planned to be commissioned, including 22 production wells, 10 gas injection wells and a water source well. The project is expected to achieve a peak production of approximately 22,300 boe/d in 2025. The oil property is light crude.

CNOOC holds 100% interest in the project and is the operator.

Contracts and company news

USEDC Sees $1 Billion in Deployments in 2025, Focusing on Permian

U.S. Energy Development Corp. plans to deploy up to $1 billion during 2025, primarily in the Permian Basin, the company said. The company spent $800 million in 2024 on operated and non-operated projects and closed 29 deals across the Lower 48.

“Our long-term acquisition and production strategies continue to generate solid performance across a portfolio of more than 2,000 wells,” CEO Jordan Jayson said. “We will continue to evaluate opportunities that align with our disciplined investment strategy and deliver value to our partners.”

The privately held E&P firm said it expects the Permian Basin to remain the primary focus of its investment in 2025 largely because of the favorable economics.

ABB and Sage Geosystems Unearth Geothermal Energy Opportunities

ABB and Sage Geothermal, a geothermal baseload and energy storage company, have signed a memorandum of understanding to collaborate on developing energy storage and geothermal power generation facilities that utilize natural heat from the earth’s core to produce clean electricity.

The collaboration will allow ABB to support Sage’s agreement with Meta, the parent company of Facebook and Instagram, to deliver up to 150 megawatts of geothermal baseload power at a U.S. location east of the Rocky Mountains. The first phase of the project is expected to be operational by 2027.

As part of the agreement, ABB will investigate how its automation, electrification and digital technology can be deployed at geothermal sites around the world to maximize energy efficiency and reliability. The partnership also has the potential to develop solutions for Sage’s energy storage technology, which can be paired with intermittent renewable resources such as solar and wind.

Indovinya Acquires Two Brands from Cargill

Indovinya, a global business division of Indorama Ventures, has acquired the Kemelix and Flowsolve brands from Cargill Bioindustrial UK Ltd. The products are used in demulsification and flow assurance processes.

The Kemelix products are demulsifiers that help separate and remove water from crude oil.  Flowsolve additives are designed to improve the flow of crude oil to refineries.