The North Sea is abuzz with activity. This year, at least 52 wells will spud in U.K. waters, said international consulting group Hannon Westwood in a recent report. Going forward, the firm has identified a total of 216 planned wells. Nearly half of those projects are in the Central North Sea. The Southern North Sea is also popular, the site of a quarter of available opportunities.

Operators have also been chalking up significant discoveries and field extensions, especially in the Central North Sea. ConocoPhillips made a 100-million-barrel-equivalent find at Jasmine in blocks 30/6 and 30/7. Several other large high-pressure, high-temperature prospects lie in the same area, and their potentials have been enhanced by Jasmine, noted the consulting firm.

North of Buzzard Field, Nexen Inc. enjoyed success in the Golden Eagle stratigraphic trap on Block 20/1. Reserves added there are around 80 million barrels. Nexen and partner Oilexco also found a nice accumulation at Kildare in Block 15/26b. That well, which tested at 4,200 barrels of oil per day, extended the original discovery downdip and also encountered a new productive horizon.

Furthermore, a farm-in campaign in the Southern North Sea has delivered encouraging signs. Silverstone Energy Ltd. has found three accumulations in the gas basin, although commercial success awaits more data on the productivity of the Rotliegendes reservoir, according to Hannon Westwood.

Work will persist in the region, thanks largely to the U.K. government's promote licenses, and the natural devolution of the mature basin from major operators to their more numerous independent brethren. At present, there are 168 total licenses in the U.K. continental shelf, up from 143 at year-end 2006. Hannon Westwood reported that U.K. offshore reserves are currently 8.7 billion barrels of oil equivalent, and no company now holds more than 1 billion by itself.

In the last two licensing rounds, a total of 138 promote licenses were awarded, and the 75 let at the close of 2005 in the 23rd licensing round are approaching the end of their initial period. "There will be a plethora of drillable prospects being generated from which potential investors can pick and choose," the firm reports.

Comments