Alpha Petroleum Resources Limited is a privately owned upstream oil and gas company, focusing on operated, development and production activities in the UK sector of the North Sea.

Alpha was established in 2000, acquired its first three licences in 2001, was appointed as a Production Operator in 2002 and achieved first production from its Helvellyn gas field in early 2004. Three further gas fields – Kilmar, Wenlock and Garrow – were brought on stream in the period 2005-2007. Alpha is now focusing on the development of the Cheviot field, working on increasing gas production and looking for opportunities to expand the current portfolio.

Alpha have a portfolio of assets at various stages of exploitation. In addition to developing the existing assets Alpha continue to look for opportunities to expand the portfolio with investment available from their shareholder, Petroleum Equity.

OVERVIEW OF OPERATIONS

Helvellyn

Helvellyn was discovered in 1985 and was acquired by Alpha in 2001 from BP.

Map source: KeyFacts Energy

The field has been developed by as a single subsea well tied back to the Perenco operated Amethyst A2D platform from where gas is exported to Dimlington.

Gas Production began in February 2004, and 19bcf of gas had been produced up to end 2016. There are estimated remaining reserves of c.1bcf. No further development activity is currently contemplated at Helvellyn.

Tors

The Tors development consists of 2 gas fields, Kilmar in Block 43/22a and Garrow in Blocks 42/25a and 43/21a.

Map source: KeyFacts Energy

Kilmar was discovered in 1992 and has gas in Carboniferous Namurian sandstones. Alpha acquired 100% equity from BP (2001) and GDF (2004), subsequently selling interests to Sojitz (2005) and Edison (2008).

Garrow was discovered in 1991 and has a Rotliegend reservoir. Garrow was an out of round award to Alpha in 2002 and equity was subsequently sold to Sojitz (2005) and Edison (2008) First gas production was achieved in 2006. The gas is exported via Trent and the ETS pipeline to Bacton, Norfolk.

The Kilmar Normally Unmanned Installation (NUI) was installed in 2005, a 6 slot platform. 3 wells have been drilled and, up to end of 2016, 69 bcf of gas has been produced. There is an estimated c. 46 bcf of recoverable gas remaining.

Kilmar is a large structure and the 3 current producing wells do not access all of the calculated gas in place. Detailed reservoir engineering work has identified infill locations and we are evaluating further development options

The Garrow NUI platform was installed in July 2008.This is a 3 slot platform, two production wells have been drilled and, up to end of 2016, 7.6 bcf of gas had been produced. Remaining recoverable gas is estimated at 4 bcf.

Wenlock

The Wenlock gas field was discovered in 1974. Equity in the licence was acquired from BP in 2001 and from ConocoPhillips in 2005.

Map source: KeyFacts Energy

The Wenlock NUI platform was installed in September 2006 with 3 production wells drilled resulting in first gas production in December 2007. Gas is exported via a 37km pipeline to the Perenco operated Indefatigable

Wenlock has produced 41bcf of gas up to end 2016. There are estimated remaining reserves of 4.5bcf.

Cheviot

Cheviot is a redevelopment of the Emerald field which was discovered in 1975 and initially developed in the mid-1990’s. However, as a result of inadequate project planning and execution, the Emerald field was abandoned early when only 8% of the original oil in place had been produced.

Map source: KeyFacts Energy

In 2003, Alpha was awarded the licence in the 21st Licence Round.

Alpha has used the extensive available database to define an optimised, low cost Field Development Plan that gained technical acceptance from the OGA in December 2015. That plan is based on the development of oil from the Cheviot and satellite Peel fields. There will be a subsequent simple development of the Cheviot gas caps and Padon satellite field. Alpha is developing oil reserves of at least 55 mmbbls and future gas volumes of 120 bcf.  Alpha will also look to use the Cheviot facility as a hub for other nearby discoveries and prospects, which have an unrisked potential of some 400 mmboe.

Alpha has signed an Exclusivity Agreement with Teekay to redeploy the Varg FPSO to Cheviot for the development of the oil. Alpha expects the project to be sanctioned in the 4th quarter of 2017 with first oil production in 2019 with production of at least 30,000 bopd.

In May 2017, Alpha announced an agreement with GE Oil & Gas to partner on the advancement of the subsea infrastructure for the Cheviot oil field. Alpha Petroleum named GE Oil & Gas as the exclusive supplier of early engineering, project management, and procurement activities for the project.

This collaboration will lead to the supply by GE Oil & Gas of subsea trees, a full control system, three manifolds, flexible jumpers, flowlines, risers and umbilicals. GE Oil & Gas will also provide subsea construction and installation services, and support commissioning.

In addition to the provision of services and technologies, GE Energy Financial Services is helping to raise the needed debt financing for the project and is in discussion with Alpha Petroleum with the intention, subject to due diligence, of making a significant capital investment at the time of final investment decision (FID), which is expected in the fourth quarter of 2017.

In September 2017, Alpha appointed Martin Freeman, formerly Group Head of Engineering at BG Group, as Project Manager for the Cheviot field development.

The appointment is part of Alpha Petroleum’s planned expansion of the Cheviot project management team to take the project forward after the Final Investment Decision (FID) in November 2017. As part of that expansion Alpha has also recently added Guy Sharman as SURF/SPS Manager, and Lawrence Ritchie as Wells Manager to the Cheviot team, to work alongside the existing FPSO team of Nigel Hill and Tom Kristiansen.

KEY PERSONNEL

Andy Crouch, Chief Executive Officer
Graham Walters, Chief Operating Officer
Paul Armitage, Subsurface Manager
Charles Proctor, Chief Financial Officer

CONTACT

Alpha Petroleum Resources Limited
No.1 London Square, Cross Lanes, Guildford
Surrey GU1 1UN, United Kingdom

t. +44 (0)1483 307200   l   e. enquiries@alphapetroleum.com 

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