Operations

Block 211/13b - West Don

Stratic owns a 17.25% stake in the West Don field through a 50% interest in Licence P.1200 covering Block 211/13b which contains the northern part of the West Don field. Stratic and partner Nippon Oil reached a commercial settlement with the partners in 211/18a (operated by Petrofac Resources Limited) for a fixed determination of working interest for the life of the field. The West Don field is operated by Petrofac.

In December 2007, operator Petrofac submitted a Field Development Programme (“FDP”) for the West Don field. The development plan envisages a three well development; two producing wells and one injector, to be in a joint development
with the nearby Don South West field, also operated by Petrofac.

The partnership has signed contracts for a floating production vessel, the Northern Producer, recently released from production operations on the North Sea Galley field, and
for the John Shaw semi submersible drilling unit to drill the development wells for both fields. Development approval is expected from the UK authorities in the second
quarter of 2008, with drilling commencing in late July.

The subsea flow lines between each field and the Northern Producer will be installed this year and first oil is expected in the second quarterl 2009. Initially production will be exported by offshore tanker loading until fixed pipeline off-take becomes available later in 2009.

Proved and probable reserves booked for the West Don field remain at 21.5 million barrels, and proved reserves are increased from 7.5 million barrels to 11.6 million barrels (2.0 million net). Production is expected to come on stream at an initial peak rate of 25,000 barrels per day (4,300 net to Stratic). Development costs to first oil are estimated at $340 million ($58 million net to Stratic).

The West Don field was discovered by well 211/18-9 drilled by Burmah Oil in 1975 and tested oil from a Jurassic Brent reservoir at rates of up to 5,000 bopd. This was appraised by well 211/13-4 in 1976, which was structurally deeper and failed to encounter hydrocarbons. A third well, 211/13b-11, drilled by BP in 1990, confirmed the discovery well and tested oil at rates of up to 7,600 bopd.

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West Don Location Map

Development schematic
of the West Don Field

Seismic section over
West Don field (courtesy of Western Geophysical)