Point of Ayr – PEDL 107 and SSPL 1481
| Licence Numbers | PEDL 107 (onshore), SSPL 1481 (offshore) |
| Aerial Extent | 211 km2 |
| End of Licence Terms | PEDL 107 – Jan 2013, SSPL 1481 – Mar 2011 |
| Licence Terms | SSPL 1481 - First Term PEDL 107 - Second Term |
| Net Risked GIIP Range | Low – 92 Bcf, Mid – 286 Bcf, High – 2,312 Bcf |
| Wells Drilled | PEDL 107 – 1 well by Nexen (2007) |
The licences at Point of Ayr lie in the vicinity of the town of Prestatyn on the North Wales coast. They consist of onshore licence PEDL107 acquired on 23 January 2007 and the offshore licence SSPL 1481 granted on 17 June 2007. SSPL 1481 consists of the offshore blocks 110/18 (part), 110/19 (part) and 110/23 (part).
Geologically, the area under licence is formed by strata of Carboniferous and Permo-Triassic Age, deformed as an upthrown anticlinal structure, plunging northwards. The area also lies on the south-eastern margin of the East Irish Sea Basin, which produces oil and gas from Triassic sandstone reservoirs in horst blocks and rotated fault blocks, notably from the Morecombe Bay Gas Field, Douglas, Lennox and Hamilton Fields.
For the most part, the onshore outcrop (within PEDL 107) is composed of strata older than the Westphalian coal measures. The coal measures that did exist in PEDL 107 were worked from the pits at Point of Ayr and Mostyn, and gas was found to be highly prolific during mining operations. The coal measures extend a considerable distance out to sea and this was the rationale behind IGas and Nexen applying for the offshore licences. PEDL 107 onshore was acquired to facilitate access to the offshore coals from onshore.
On 26 November 2007, a well was spudded at Mostyn Quay. This assay well was drilled to core and log the coal measures and corroborate existing cores in the area. The rig left site on 15 December 2007 and the well was plugged and abandoned as planned. The drilling of this well satisfied the commitments under the first term of the licence and extended it into its second term.
Equipoise Solutions Ltd, which prepared the competent persons report used in the Net Risked GIIP range above, assessed the Point of Ayr licence areas. The large variation between mid- and high-case shown in the Net Risked GIIP range is primarily a function of how far offshore it is considered feasible to drill, and the potential for considerable upside in coal thickness offshore.
Source: Equipoise Solutions Limited Evaluation of the Coal Bed Methane Interests of IGas plc as published on 31st October 2008, a copy of which can be found in the investor section of the website.
© Crown copyright, All rights reserved 2008, License number 0100031673
