Stratic Energy Corporation - Field Development Programme Submitted for West Don Oil Field



    CALGARY and LONDON, Jan. 10 /CNW/ - Stratic Energy Corporation (TSX
Venture: 'SE', AIM 'SE.') ("Stratic" or the "Company") announces that a field
development programme ("FDP") for the West Don oil field in the UK North Sea
has been submitted for approval to the UK Government's Department for
Business, Enterprise and Regulatory Reform. The field will be developed in
conjunction with the nearby Don Southwest field, using a modified and
re-furbished floating production facility ("FPF"), the Northern Producer. In
addition, a drilling unit, the Transocean John Shaw, has been contracted to
drill the initial development wells.
    The West Don field straddles Blocks 211/13b and 211/18a (licences P.1200
and P.236 respectively) of the northern North Sea, approximately 150 km
northeast of the Shetland Islands, in a water depth of approximately 500 ft.
Stratic acquired a 50% interest in Block 211/13b in the UK 22nd Licensing
Round. Owners of the two blocks have agreed a fixed field unitisation which
results in Stratic owning 17.25% of the West Don unit. The operator is
Petrofac Energy Developments Limited.
    The West Don field was discovered in 1975 by well 211/18-9 which
contained oil in sandstones of the Middle Jurassic Brent Group. The field was
further appraised with well 211/13-4 in 1976 and with well 211/13b-11 in 1990.
The West Don reservoir comprises a circa 470 ft thick Brent sandstone
sequence, similar to that currently producing in the nearby Thistle, Penguin,
and South Magnus oil fields. Estimated proven and probable reserves of West
Don are approximately 21 million barrels from a STOIIP of 53mmstb. There is
additional upside potential in the southern area of the field. The oil gravity
is 34 degrees API.
    The FDP envisages the drilling of two updip high angle producers and one
downdip water injector well from a central cluster, tied back to the FPF,
which will also handle Don Southwest production. The Northern Producer is a
former drilling unit converted for production operations, which operated until
recently on the UKCS Galley oil field. It has been secured for field life
under a lease arrangement, with tariffs based on oil throughput and prevailing
Brent oil prices. Initial peak production rates from West Don are expected to
be around 25,000 bopd (gross).
    Oil export from the Northern Producer will either be by offshore loading
by tanker or subsea tie-back to a nearby platform. Discussions with potential
service providers are ongoing.
    FDP approval is expected to be received in the first half of 2008, with
development drilling expected to commence on West Don in the second half of
2008. Some modifications and life-extension works will be carried out on the
Northern Producer in 2008. First oil is targeted for the second quarter of
2009.
    Total capital costs of the project are expected to be about
GBP 170 million (gross).
    Kevin Watts, Stratic's Chief Executive, commented:
    "The submission of the West Don development plan means we have created a
project of very substantial value out of a stranded oil discovery which was
acquired with minimal investment but has been the subject of extensive
technical and commercial work over two years. This is a major milestone for
Stratic and a validation of our North Sea business model. On completion,
anticipated next year, the project will provide Stratic with significant
operating cashflow."

    
    Notes to Editors:

    1.  About Stratic: Stratic Energy Corporation is a Canadian-incorporated
        international oil and gas business focused on adding value
        principally through the appraisal, development and production of
        existing discoveries, supplemented by a low to moderate risk
        exploration program. Stratic's principal interests are in the UK and
        Dutch sectors of the North Sea, Italy, Turkey and Syria. Its shares
        are listed on the TSX Venture Exchange in Toronto and on AIM, London
        and its principal operating office is in London, UK.

    2.  West Don Ownership: Co-venturers in the West Don unitised field area
        are as shown in the table below:

        ---------------------------------------------------------------------
        Owner (%)              211/18a           211/13b            West Don
                               (P.236)          (P.1200)           unit area
        ---------------------------------------------------------------------
        Petrofac                43.11                                 27.700
        ---------------------------------------------------------------------
        First Oil               30.00                 -               19.275
        ---------------------------------------------------------------------
        Nippon                                    50.00               18.500
        ---------------------------------------------------------------------
        Valiant                 26.89                                 17.275
        ---------------------------------------------------------------------
        Stratic                     -             50.00               17.250
        ---------------------------------------------------------------------
    

    Forward-looking statements

    This news release contains certain forward looking statements, which
involve assumptions with respect to future plans, production levels and
results, and capital expenditures. The reader is cautioned that all such
forward looking statements involve substantial risks and uncertainties and the
assumptions used in their preparation may not prove to be correct. Stratic's
actual results could differ materially from those expressed in, or implied by,
these forward looking statements and accordingly, the forward looking
statements are qualified by reference to these cautionary statements. The
forward looking statements contained herein are made as at the date of this
news release. Stratic undertakes no obligation to update or publicly revise
forward looking statements or information unless so required by applicable
securities laws.

    TSX-V and AIM notifications

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    Stratic's Chief Operating Officer, Dr Mark Bilsland BSc (geology), PhD
(petroleum petrophysics), and member of the SPE, is the qualified person who
has reviewed and approved the technical information in this announcement for
the purposes of the AIM Rules for Companies (incorporating the Guidance Note
for Mining, Oil and Gas Companies).




For further information:

For further information: Peter Thomas, Chief Financial Officer, +44 20
77667920; Mark Bilsland, Chief Operating Officer, +44 20 77667900; Patrick
d'Ancona, M: Communications, +44 20 7153 1547; Canadian Investor Relations,
Roger Fullerton, (952) 929-7243, Email: roger.fullerton@straticenergy.com;
Website: www.straticenergy.com

Organization Profile

STRATIC ENERGY CORPORATION

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890