Contingent Resources
Our exploration activities are fundamental to maintaining, replacing and growing our reserve base. In a strategic review of our business we set ourselves a goal of sourcing 30% of our gas supply to our downstream customers from fields in which we hold a direct interest. Using exploration and development of our acreage as the primary route to this goal, we are also open to opportunities for strategic and targeted acquisition.
Substantial exploration portfolio
We have built a substantial exploration portfolio on the Danish, Norwegian and UK sectors of the NW European Continental Shelf as well as in the waters around the Faroe Islands. The Danish sector is mature with limited opportunities for new major discoveries therefore, our primary focus in Denmark is to develop near field prospects.
The Hejre Field
In March 2007 we acquired a 30% interest in Hejre field from ConocoPhillips to supplement our existing 20% interest and became field operator. We plan to file an application for approval of PDO for the Hejre field with the Danish Energy Agency in 2009 and expect commercial production at the end of 2013. We plan to use existing Danish infrastructure to export the natural gas.
West of Shetlands
We are one of the most active companies in the area having an interest in three of the largest discoveries made in the area in recent years. We are co-ordinating the joint industry and UK Government West of Shetland Task Force to identify a regional, collective solution to bring gas from this region to market.
Currently our portfolio includes 19 UK licences with a direct interest in many of the discoveries yet to be developed, including:
- Cambo
- Laggan
- Rosebank/Lochnagar
- Tobermory
- Tormore
- Torridon.
The West of Shetland area represents nearly a fifth of the UK's remaining oil and gas reserves; its development will help to reduce the UK’s exposure to energy imports and improve the nation’s security of supply. We plan to strengthen our position in this region by continuing to drill exploration and appraisal wells and creating opportunities to bring discoveries on-stream as quickly as possible. At the asset level, our current focus is on bringing the Laggan, Rosebank/Lochnagar and Tormore fields through concept selection to project sanction.
Greenland
We acquired a license to explore an area West of the Disko Island in Greenland in September 2007. Though virtually unexplored, data points to potentially very large exploration prospects. However, ice, deep water, sensitive environment, and remoteness make economic development challenging for the foreseeable future.