talisman p1371 blocks 205 9, 10, 14, 206 1b, 2b & 6 ... · talisman energy (uk) limited...

Relinquishment Report Frontier Licence P1371

Blocks 205/9, 10, 14 & 206/1b, 2b, 6

February 13 Page 1 of 4

1. General Licence Number: P.1371 Licensing Round: 23

rd

Award Date: 22nd

December 2005 Licence Type: Frontier Blocks: 205/9, 205/10, 205/14, 206/1b, 206/2b & 206/6 Equity: Talisman Energy (UK) Limited 100% (Operator). 2. Licence Initial Term Expires: 21

st December 2007

Work Commitments: Acquire 11,300 km2 of 3D seismic data Carry out geological studies Second Term Duration: 22

nd December 2007 - 21

st December 2011

Obligations: Minimum 75% relinquishment by area Blocks: 205/9a &10a Commitments: Drill one well to a depth of 3500m, or elect to allow the licence to

automatically cease.

Figure 1: Location Maps of Licence P.1371, Blocks 205/9, 205/10, 205/14, 206/1b, 206/2b & 206/6

Relinquishment Report Frontier Licence P1371

Blocks 205/9, 10, 14 & 206/1b, 2b, 6

February 13 Page 2 of 4

Licence P1371 is a Frontier Licence, awarded in the 23rd

UK Offshore Licensing Round. The licence commenced on the 22

nd December 2005 and the Second Term of four years ends on

the 21st December 2011. The Licence was awarded to Talisman Energy (UK) Limited as

operator with 100% equity. There have been no changes to the equity position during the term of the Licence. In line with the terms of a Frontier Licence, at the end of the Initial Term, a minimum of three quarters of the areal extent of the licence was surrendered. The Licence then passed into the Second Term of four years. The firm work commitments on this licence were to acquire 11,300 km2 of 3D seismic data and to carry out geological studies. There is a "drill or drop" well commitment in the licence area, to drill one well to a depth of 3500m, which would have to be fulfilled prior to passing into the Third Term of six years.

This report has been prepared to support the relinquishment of Licence P1371 at the end of the Second Term of the Licence. Any remaining prospects on the licence are perceived to carry high risk as a result of a Quantitative Interpretation work programme carried out in-house by Talisman.

No wells have been drilled or other data acquisition programmes undertaken during the lifetime of the licence.

Ten wells drilled and abandoned by previous operators existed on the block at the time of the award of the Licence:

• 205/9-1, Britoil, P&A gas shows, 1994

• 205/10-1,1A, BP, P&A oil shows, 1981

• 205/10-2,2A,2B, BP, P&A oil shows, 1984

• 205/10-3, BP, P&A dry hole, 1985

• 205/10-4, Chevron, P&A dry hole, 1997

• 205/10-5,5A, Chevron, P&A dry hole, 1997

• 205/14-1, Shell, P&A dry hole, 1990

• 205/14-2, Esso, P&A dry hole, 1996

• 205/14-3, Amerada Hess, P&A dry hole, 1997

• 206/1,1A, BP, P&A gas shows, 1985 3. Exploration Activities The firm work commitments at the start of the Licence were:

• Acquire 11,300 km2 of 3D seismic data

• Carry out geological studies

The first obligation was met by the licensing of PGS Mega-Merge data covering the entire UK West of Shetlands region; the second has been met by the interpretation work programme, subsequent Quantitative Interpretation analysis and stratigraphic analysis of the local well data.

Relinquishment Report Frontier Licence P1371

Blocks 205/9, 10, 14 & 206/1b, 2b, 6

February 13 Page 3 of 4

4. Prospectivity Analysis The original application for these blocks, along strike from the major discoveries in the Laggan / Torridon / Mull area, was made on the basis of a number of bright seismic reflections within the Tertiary Succession (T10-T36) noted on the PGS Mega-Merge dataset. A Frontier License application was made to provide time to fully review and evaluate the area.

Figure 2: Stratigraphy and picked seismic events A full interpretation of the PGS Mega-Merge 3D seismic dataset was carried out to determine if any valid traps remained undrilled within the Licensed area. Seismic interpretation in this area is challenging with poor continuity. The highest confidence is achieved by the interpretations of the Kettla Tuff and “Near Top T10” events. These events define the envelope of the overall prospective zone, the Vaila Formation. Seismic attribute analysis shows some significant amplitude variations across the area, although interpretation of these variations is made more complex by the “patchwork” of underlying surveys which have been stitched together to form the PGS Mega-Survey. The presence of a laterally continuous lava flow at the T45 level further obscures the seismic image below this point making qualitative interpretation challenging.

In order to establish the significance of the amplitude variations Talisman undertook a screening project to review the potential for Quantitative Analysis to define lithologies or fluids. This work determined that “within the 205/9, 10 licence area no seismic response analogous to the Laggan discovery is observed within the Vaila Formation (~T10-T35). Responses classified as possible patchy gas sands appear to be mostly associated with near base T35 sands.”

Relinquishment Report Frontier Licence P1371

Blocks 205/9, 10, 14 & 206/1b, 2b, 6

February 13 Page 4 of 4

Figure 3: P.1371 Seismic Illustration with Location Map and Base T35 Ampltude Map 5. Clearance Talisman Energy (UK) Limited confirms that permission has been sought and gained from PGS to publish the seismic data and interpretations contained in this relinquishment report.