The Jaguar prospect was interpreted as a large Upper Jurassic stratigraphic trap in Northern North Sea Block 211/22b (Licence P1067) northeast of the Cormorant North oil field.
If hydrocarbon bearing, Jaguar has the potential to hold several hundred million barrels of recoverable oil reserves within several sandstones, Elixir managing director Russell Langusch said.
“The Jaguar well could have a major impact on our company if it proves successful,” Langusch said.
“However, as a focused North Sea explorer, we are only too aware that exploration outcomes cannot be predicted. Hence we shall continue to pursue activities in all of our licence areas, aiming at a multi-well drilling program over 2006-07 to optimise our chances of success.”
Although this type of play is relatively new for the UK sector of North Sea, it has been proven in an analogous geological setting on the Norwegian side of the median line, Elixir said.
The semi-submersible rig Bredford Dolphin is currently moving to the Jaguar well site, designated as 211/22b-5. The company said drilling is expected to take 45 days to reach a total planned depth of 4000 metres.
Under a farm-in last year, Norwegian-based DNO ASA agreed to take a 60% working interest in Block 211/22b by paying 92.5% of the Jaguar well costs. Elixir retained a 40% interest and would contribute the remaining 7.5% of well costs.
In a subsequent earn-in agreement, DNO will transfer a 10% interest in Licence P1067 to Norweign-based offshore technology firm, Rocksource ASA, which will pay 15.42% of the well costs.
Following the completion of the above transactions and the approval of the relevant UK authorities, the licence holders in P1067 will be: DNO (50% and operator), Elixir (40%) and Rocksource (10%).
