E.ON: Tolmount bigger than expected

Energy company E.ON has said a gas discovery in block 42/28d in the UK southern North Sea is bigger than first thought.

A well on the Tolmount discovery, 40km off the coast of East Yorkshire and to the west of the E.ON-operated Babbage gas field, encountered a gas column of more than 200ft in Leman sandstone.

A well test flowed at a maximum stable rate of 50MMscf/d, said E.ON.

E.ON said Tolmount had potential reserves of up to 16 billion cubic meters, which would make it one of the largest gas discoveries in the area in the last two decades.

The Tolmount license is operated by E.ON with Dana Petroleum E&P, a wholly owned subsidiary of Korea National Oil Company, as partner. Both companies have 50% stake.

The southern North Sea had been seen as a declining basin, however, recent discoveries is prompting renewed interest in the area.

GDF Suez and partners are currently developing the Cygnus field—described as the largest discovery in the southern North Sea in the last 25 years.

E.ON’s exploration and production business, launched in 2003, is active in the UK, Norway, Russia, and North Africa.

In 2010, E.ON E&P produced 8.6 billion cu m of oil and gas. E.ON says this will rise significantly in coming years as further fields come on stream.

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