The South of England

The case for recognition and discussion of strategic regional resources

In Dorset, Hampshire, The Isle of Wight and West Sussex there is an oil resource estimated at 50-200 million barrels recoverable dependent upon the regulation and consents enabling cost effective disposal of associated formation waters.

These fluids represent a significant if low grade (55-75ºC) renewable heat source recoverable as utilised at Southampton if well locations are suitable planned.

It is recommended that Government and the Industry confer before the conclusion of the current Strategic Environmental Assessment to review the value of these combined resources and identify potential legislative and regulation changes that might be recommended to enable their economic exploitation.

OIL RESOURCES

Northern Petroleum Plc, assisted by Exploration Consultants Limited, has completed an assessment of the potential within its licensed areas and concluded that there are possible recoverable oil reserves in the Great Oolite formation of 222 million barrels of oil and further contingent resources of 67 million barrels of oil.

The studies project that production will have about a 90% water cut at the time of abandonment which with suitable low cast for water disposal could be significantly prolonged.

At present the disposal of water lacks a coherent regional policy and understanding. Fields less than 15km. apart receive different treatment from Local Authorities. It is imperative for economic extraction at high water cuts for there to be either in field re-injection or short pipelines to a suitable disposal borehole.

THERMAL RESOURCES

All boreholes of the size normally drilled for oil exploration in the Wessex and Weald have a potential value for geothermal energy that it is believed would be economic if the bulk of the costs are attributable to oil the exploration project and are suitably located to be close to a thermal user of lower grade heat such as hospitals, superstores, swimming pools, government offices, industrial estates and the military.

It is easy to envisage that it would be important that wells are suspended pending thermal engineering studies.

It is suggested that the long term thermal heat values could be of very long term interest to local communities and will enable dialogue between the oil Industry, Local and National Government, the local populace and environmental issue bodies to take place on a different basis to establish borehole sites in mutually compatible locations.

DEREK MUSGROVE

Northern Petroleum Plc

16th May 2005