Triangle Energy’s joint venture with Athena Exploration has been offered 5 blocks in the West of Shetlands gas province as part of the first tranche of awards in the 33rd UK Licencing Round. The JV’s blocks contain the Cragganmore gas field. This is defined by three wells, two of which discovered gas and one which encountered water, outside the area of high amplitudes. The reservoir quality varies between the two gas wells, the determination of which will be addressed by the work programme, which is likely to comprise obtaining 3D seismic and reservoir studies for the firm commitment period. The Cragganmore gas field has been estimated by the operator, Athena, to have a range in discovered recoverable gas (Gross Contingent Resources) from a low estimate (1C) of 273 Bcf to a high estimate (3C) of 1,022 Bcf, with a best estimate (2C) of 527 Bcf (136 Bcf 1C – 263 Bcf 2C – 511 Bcf 3C net to TEG). 

These blocks are located next to 16 blocks offered to Shell which contain the Tobermory and Bunnehaven gas fields. These gas fields when developed, with the gas field in the JV’s acreage, could form an economic cluster that could be tied back to existing gas pipelines on the Shetland Isles and thereon to the UK mainland. The area is undergoing significant renewed activity, as evidenced by the recent decision of Equinor and Ithaca to take the final investment decision on the nearby 300 million barrel Rosebank oil field. The JV will undertake further discussions with the NSTA to confirm the work programme prior to finalising the award of the permit. It is expected that the work programme will comprise 3D seismic and studies for the first stage of the licence. 

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