Mid North Sea High Licences

Over the past five years, United Kingdom North Sea offshore petroleum exploration Licences P2329, P2427, P2486 and P2557 were awarded to a licence consortium, with the Horizon Energy companies currently holding the largest interest. The licences were successfully granted in every Licence Round from the 28th through to the latest 32nd. The Horizon Energy companies own a 77.50% interest in Licences P2329, P2427 and P2486 and an 87.50% interest in Licence P2557. The total licenced area approaches 2,400 square kilometres (~ 1,000 square miles) of contiguous acreage, comprising approximately 10 North Sea Blocks, located within the Upper Permian Zechstein (‘Z2’) oil and gas play fairway. The Horizon Energy consortium were the early movers of this highly prospective “frontier” area. 

A large portfolio of prospects and leads have been mapped on both 3D and 2D seismic data. These are presently being updated and refined based on newly acquired and available, state-of-the-art, ION Geophysical 3D seismic coverage of 2,981 square kilometers (~1,150 square miles), recently licenced by Horizon Energy covering the entire licenced area. The licences contain prospects with prospective resources in the multi-billion-barrel range.

 The top 12 prospects within the licenced area have prospective resource potential of 2.54 billion barrels of oil.

As an example, the economics for an oil field development of a standalone prospect with prospective resources of 150 million barrels are robust, with an NPV10 at $70 oil of $2.4 billion, IRR 80%, and NPV10 at $50 oil of $1.5 billion, IRR 64%.