UK firm expands its portfolio with gas discovery and several prospects West of Shetland

Home Fossil Energy UK firm expands its portfolio with gas discovery and several prospects West of Shetland

February 29, 2024,
by

Melisa Cavcic

London-based independent upstream company Viaro Energy, through its operating subsidiary RockRose Energy, has secured full ownership interest in a license located West of Shetland and become license administrator. Currently, the firm is laying the groundwork to become the operator of this license.

Illustration; Source: Viaro Energy

Viaro sees license P.2593 as an important addition to its portfolio since it is strategically placed close to RockRose-owned existing producing assets and infrastructure. This license entails the Tuck discovery, a Cretaceous gas-bearing reservoir, trapped on the North West flank of the Rona Ridge. According to the company, the discovery is supported by an amplitude anomaly, which indicates thicker and better-quality reservoir sands, up dip, and along strike from the discovery well.

Francesco Mazzagatti, CEO of Viaro Energy, commented: “The West of Shetland continues to be a strategic hub for exploration opportunities, and the Tuck discovery could hold considerable resources. The licence’s proximity to our existing assets in the Greater Laggan Area offers important potential for extending the life of the infrastructure, including the Shetland Gas Plant. The work programme will also focus on exploring electrification and other technological innovations to reduce emissions in the area.”

The license area holds several other prospects and leads, including the Boulmer prospect, a ‘drill-ready’ Devonian structure with up to 800 m of Lower Clair sediments. Currently, Viaro is evaluating existing plans and the most advantageous opportunities in the license to progress to the next phase.

The company is also working on progressing the development of assets in its existing portfolio. To this end, Hartshead Resources NL and Viaro Energy reached an agreement in December 2023 to amend a farm-out agreement (FOA) and joint operating agreement (JOA).

This provides Hartshead with an option to divest an additional 20% equity interest in its UK Southern Gas Basin License P2607, in return for an uncapped free carry of all gross costs for Phase I development costs of a gas project in the UK North Sea.

Posted: 2 months ago

This came after the duo launched an invitation to tender for pipeline EPCI services for the Anning and Somerville fields, following the completion of the pipeline route survey covering the offtake routes for gas production from the developments.

At the end of 2023, RockRose reached an agreement with EnQuest to buy a 15% working interest in each of the Bressay fields and the FPSO EnQuest Producer, both located in the UK North Sea.