Wessex Exploration and Norwest identify 7 potential oil targets in Southern England

Wessex Exploration (PLUS: WX) noted the evaluation of its licences in Southern England, conducted by the company’s exploration partner Norwest Energy (ASX: NWE). The company said that the findings of Norwest’s evaluation and economic scoping study of the Wessex Basin strongly supports Wessex's longstanding opinion of the prospectivity of this part of southern England.

Wessex cited a Norwest statement, saying it has identified seven promising leads with potential (P50) un-risked recoverable oil ranging from 3.4MMbbl (million barrels) to 53.88MMbbl in its three Southern England permits. Furthermore the economic scoping study determined a minimum volume of 400,000 bbl oil as the commercial threshold for future UK onshore discoveries.

"The resource evaluation has determined that every one of these leads has the potential to exceed the minimum threshold of 400,000 barrels of oil”, Norwest chief executive Peter Munachen said. “This provides encouragement for Norwest to conduct further work to de-risk the leads into drillable prospects".

Wessex has an interest in all three of the licenses, with a 50% stake in PEDL238 which spans the Dorset coast - immediately north of BP’s (LSE: BP.) Wytch Farm oil and gas field. The license stretches between Christchurch and Poole Harbour and includes Bournemouth. PEDL 089 comprises Norwest’s Hurst Castle project area, and Wessex owns a 30% interest in this license. Wessex has a 25% stake in the PEDL239 permit, on the Isle of Wight - southeast of Dorset and east of the Wytch Farm oil and gas field.

On the PEDL238 license Norwest identified 5 leads consisting of Mooneye, Sockeye, Hammerjaw, Coho and Beluga - which also spans across onto the adjoining PEDL089. The Hurst Castle area (PEDL089) hosts the Bluegill lead and on the Isle of Wight (PEDL239), the Razorback lead was identified.

According to Norwest, the BP operated Wytch Farm has estimated original reserves of 500MMbbl, with 400MMbbl produced to date. Since Wytch Farm's discovery in 1973, no other significant oil field has been found in the Wessex Basin, which remains underexplored.

"Onshore England has been overshadowed by the higher North Sea petroleum province, but as working the North Sea becomes more difficult and more expensive, this is likely to change," Munachen added.

"Although the lead sizes are considerably smaller than the giant Wytch Farm field, the proximity of our leads ... together with commercial thresholds in the 400,000 barrel range, indicates the chances of achieving future commercial success are significant".

Westhouse Securities featured Wessex in today's 'Daily Oil  & Gas Filter' , saying the confirmation of leads on Wessex’s licences is a major advance and indicates that there could be multiple drillable prospects on this acreage in southern England. This is in addition to the company’s interest in the very attractive Guyane Maritime licence, it added.

http://www.proactiveinvestors.com.au/companies/news/6340/wessex-exploration-and-norwest-identify-7-potential-oil-targets-in-southern-england-6340.html