England

OIL PRODUCTION IN SOUTH EAST ENGLAND

Brockham and Lidsey Oil Fields
100% owned

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The two producing oilfields, 100% owned and operated by Key Petroleum Weald Basin Ltd, are the Brockham and the Lidsey Oil Fields. Both fields are only partially developed and are located in the oil prone Weald Basin. Oil currently produced from both fields is trucked and sold into the nearby BP Hamble receiving facility at Southampton. These fields currently produce approximately 85 bbls of oil per day (bopd), but Key Petroleum believes there is potential for increased production from these fields through innovative drilling and workovers.

Geomodeling and simulation studies in 2002 for the Lidsey Field indicated field STOIIP of some 9.2 MMstb.  The simulation study predicted that a single horizontal well in the Lidsey Field should be capable of increasing total field production to over 500 bopd. Key Petroleum is studying this option in more detail with a view to increasing the developed recoverable reserves from the current 128,000 bbls to 343,000 bbls.

The Brockham Facility is located at Brockham in Surrey, within PEDL 235 and is a self-contained production unit consisting of tanks, generators, pumps and separator equipment designed to handle the produced 28 degrees API oil. The field was originally discovered in 1987 by a consortium led by BP. The field was brought onto production in 2002. It currently has in the region of 159,000 bbls of recoverable reserves, however, Key’s review of the Brockham field leads it to believe that there is a potential 483,000 bbls of further recoverable reserves which may be accessible following a number of remedial steps on one of the field’s wells which is currently underperforming.

The Lidsey Facility is located at Lidsey in Hampshire in PEDL 241 and is a self-contained production facility designed to handle all treatment and export of the produced 37 degrees API oil. The field was originally discovered in 1987 and was brought on stream in March 2008 after construction of new production facilities.

Key’s geological team has been studying the potential of drilling a horizontal well into the Lidsey Formation which will utilize the current Lidsey Field production location.  Having a location that is already established reduces the work involved in preparation for a drilling site as well as providing a substantial cost saving. In addition, with production process facilities already in place, any successful well can be tied back into the process system almost immediately, generating cash flow for the Company and providing early pay back of the drilling cost. 

Southern England is home to a number of oil fields that include the largest onshore producing oil field in the United Kingdom, Wytch Farm developed by BP. That field is believed to have produced in excess of 400 million bbls of oil and has produced at a rate of over 100,000 bopd.

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