The Esmond Gordon fields have the potential to form the basis of a 145 billion cubic feet gas storage facility, the firm said. Star Energy intends to exercise its option to increase its interest in the project to 50% and become the operator.
According to Star Energy, the study confirmed a capital expenditure estimate of GBP1.15 billion comprising two offshore platforms, a 200km pipeline and a terminal at Bacton.
The company is planning to drill an appraisal well on the Esmond field in the first or second quarter of 2008 at a cost of approximately GBP7.5 million. The feasibility study was undertaken in conjunction with EnCore Oil, the operator of the Esmond and Gordon fields, and Malaysian oil and gas giant Petronas.
Roland Wessel, CEO of Star Energy, said: This has the potential to significantly enhance the UK’s security of gas supply during a period when the country is becoming increasingly dependent on imports.
