Neptune kicks off Cygnus infill drilling
Neptune Energy said August 25 it had kicked off an infill drilling campaign in the southern sector of the UK North Sea, bringing the number of wells at its Cygnus gas project to 10, aiming to supply an additional 200,000 British households.
Drilling will be undertaken by the Prospector 1 jack-up rig chartered from Borr Drilling. The rig's specifications fit with Neptune Energy's GHG reduction strategy to supply low-carbon gas in line with the UK's energy security policy, promising up to 95% less CO2 and nitrogen emissions, and an 85% reduction in particulate matter emissions.
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The shallow-water Cygnus gas field launched in 2016, and is situated in southern North Sea blocks 44/11a and 44/12a. Neptune said on May 10 it planned to drill two in-fill wells to support Cygnus's production profile. Once the current in-fill well is completed in Q4, Cygnus should possess sufficient capacity to supply 2mn UK households.
Cygnus's expansion to 10 production wells is part of Neptune's five-year $1bn North Sea investment drive, aimed at extracting more indigenous oil and gas for the UK market.
The London-listed independent currently serves around 11% of the UK's gas supply from a portfolio that straddles the Norwegian and UK sectors. Its carbon intensity, of around 1.7 kg/boe, compares with a global average of around 20 kg/boe.
At around 2 kg of CO2/boe, Cygnus's carbon profile outperforms averages across the UK Continental Shelf, Neptune said.
Neptune reported on August 11 that its second quarter EBITDAX had risen by 120% yr/yr to reach $760.5mn. The quarter saw Neptune pay off a large chunk of its debt load. By the end of June 2022, Neptune's net debt to EBITDAX ratio had fallen from 1.95 to 0.43 yr/yr.