CALGARY and LONDON, April 29 /CNW/ - Stratic Energy Corporation (TSX Venture: 'SE', AIM 'SE.') ("Stratic" or the "Company") announces the commencement of production from the West Don field in the UK North Sea.
Stratic has a 17.25% interest in the field which is operated by Petrofac Energy Developments.
Production from the field commenced on 28 April, less than one year from receiving government approval for the Field Development Programme. The field is currently producing from the first production well, with the second production well and a water injector due to come on stream early in the third quarter when peak production from the field is expected to reach 25,000 barrels of oil per day (bopd), over 4,300 bopd net to Stratic.
The West Don field has been developed together with the nearby Don Southwest field, and produces through the Northern Producer floating production vessel. Initial production is being exported by tanker with a permanent tie-in to the Brent export system expected to be completed early in 2010.
Mark Bilsland, Chief Operating Officer, commented: "The commencement of production from the West Don field represents a substantial achievement for the Petrofac led partnership in converting an under-exploited discovery into reserves and production in the challenging North Sea environment. First oil also marks a significant milestone for Stratic, representing our first North Sea production and the cornerstone of our business for the future."
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this release.
About Stratic:
Stratic Energy Corporation is a Canadian-incorporated international oil and gas business focused on adding value principally through the appraisal, development and production of existing discoveries, supplemented by a low to moderate risk exploration program. Stratic's principal interests are in the UK and Dutch sectors of the North Sea, Italy, Turkey and Syria. Its shares are listed on the TSX Venture Exchange in Toronto and on AIM, London and its principal operating office is in London, UK.
About West Don:
The West Don field is located in the northern North Sea, approximately 150 km northeast of the Shetland Islands and 12 km north of the Thistle Field in a water depth of approximately 500ft.
The West Don field is operated by Petrofac Energy Developments Ltd and is unitised over two blocks; 211/13b and 211/18a. Stratic owns a 17.25% stake in the West Don field through its 50% working interest in Licence P1200 which covers Block 211/13b in the northern North Sea and was acquired in the 22nd UK Offshore Licence Round. The West Don field is being developed jointly with the Don Southwest field, also operated by Petrofac. Stratic does not have a working interest in the Don Southwest field.
The development of the West Don field discovery utilises two producing wells and one water injection well connected via a sub-sea tieback to the Northern Producer floating production facility where the oil is processed and prepared for export. The Northern Producer has been secured on a flexible lease contract for field life with the lease cost based on an oil throughput tariff varying with the Brent oil price. The Northern Producer will also handle production from the nearby Don Southwest field to be developed in parallel with West Don. Production is initially to be offloaded by tanker until the Northern Producer is tied in to the nearby Thistle platform and Brent oil export infrastructure, expected to occur in early 2010.
As at 31 December, 2007 Stratic reported booked proved and probable reserves for West Don of 3.77 mmbbls, of which 2.00 mmbbls is categorised as proved.
Stratic expects its total net investment on the West Don field development to be approximately US$59 million.
Forward-looking statements
This news release contains certain forward looking statements, which involve assumptions with respect to future plans, production levels and results, and capital expenditures. The reader is cautioned that all such forward looking statements involve substantial risks and uncertainties and the assumptions used in their preparation may not prove to be correct. Stratic's actual results could differ materially from those expressed in, or implied by, these forward looking statements and accordingly, the forward looking statements are qualified by reference to these cautionary statements. The forward looking statements contained herein are made as at the date of this news release. Stratic undertakes no obligation to update or publicly revise forward looking statements or information unless so required by applicable securities laws.
TSXV and AIM notifications
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this release.
Stratic's Chief Operating Officer, Dr Mark Bilsland BSc (geology), PhD (petroleum petrophysics), and member of the SPE, is the qualified person who has reviewed and approved the technical information in this announcement for the purposes of the AIM Rules for Companies (incorporating the Guidance Note for Mining, Oil and Gas Companies).