Oil and gas company Parkmead has nearly doubled its stake in the major Sanda North and Sanda South structures in the west Shetland area of the UK North Sea.
These two large Palaeocene prospects are located within Block 205/13.
With this acquisition, Parkmead has increased its equity in the licence from 56% to 100%.
The Parkmead-operated Sanda North and Sanda South prospects are understood to contain 280 million barrels of recoverable oil.
Parkmead executive chairman Tom Cross said: “We are delighted to have nearly doubled our stake in the very large Sanda North and Sanda South prospects, which have the potential to add major value to the company.
"The west of Shetland is an area that we understand well, and this increased stake further builds on the strength of Parkmead’s asset portfolio in the UK.
"We are pleased that high-impact exploration close to our acreage could add further regional value to Parkmead’s assets, at no cost to our company.
“The team at Parkmead is working intensively to evaluate and execute further value-adding opportunities in our core areas of the UK and Netherlands.”
The licenses covering Block 205/13 was originally awarded to Parkmead as part of the UKCS 28th Licensing Round. In this round, Parkmead secured a total of six new oil and gas licences covering ten offshore blocks.
Block 205/13 is located in the Faroe-Shetland Trough in the west of Shetland region of the UK North Sea.
The primary play fairway developed on this acreage is the Paleocene Vaila Formation, which forms the reservoir in the nearby oilfields at Foinaven, Schiehallion and Loyal. It also covers the Laggan and Tormore gas discoveries, which are located north-east of Sanda.
The Vaila Formation comprises a sequence of interbedded sandstones, deposited in a submarine fan environment. It includes five main reservoir units.
A detailed mapping of Block 205/13 indicates two exploration targets, Sanda North and Sanda South, which are defined by amplitude anomalies in the Palaeocene Vaila section.
The Sanda prospects have been de-risked through drilling an earlier well up-dip of the amplitude anomaly.
Parkmead’s team of geoscientists has already undertaken extensive seismic reprocessing work on the licence and has recently acquired detailed geochemical data from the previously drilled well.
This new data will be analysed to further de-risk the target ahead of a drilling decision at Sanda.