In its latest report, Hannon Westwood, the UKCS upstream consultancy has revealed that the North Sea is experiencing record levels of farm-in opportunities – with many companies chasing insufficient investment dollars. The report ‘POTENTIAL FARM-IN OPPORTUNITIES’ reveals that from the 107 North Sea wells planned between now and early 2008, around 50 wells will require farm-in funding.

“Since the late 1990s, the number of acreage holders in the North Sea has doubled, changing the dynamics of the North Sea,” explains Charles Westwood, Founding Partner, Hannon Westwood. “There are now 143 companies holding North Sea assets, offering an abundance of investment opportunities as well as intense competition for rig slots.”


The report identifies the following farm-in opportunities (as of mid-October 2006) through to early 2008:


· 23 in the Central North Sea


· 14 located in the Gas Basin


· 2 West of Britain


· 9 targeting “heavy” oil or HPHT plays


“We are seeing the bulk of the investment interest coming from North American E&P companies,” adds Chris Bulley, Hannon Westwood’s Executive Director. “With around 25 farm-in opportunities per year identified over the next three years, these companies are keen for assistance to identify quickly the most relevant North Sea investment opportunities.”


The Hannon Westwood report will be updated on a quarterly basis as the dynamics of this North Sea farm-in market evolve. The report provides technical detail on over 40 of the identified farm-in opportunities and a first-pass screening to grade the opportunities for further evaluation.
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