Fairfield Energy and RWE DEA UK join forces at Clipper South

abarrelfullabarrelfull wrote on 29 Jul 2012 12:52

23 December 2009

Fairfield Energy, as Operator of the Clipper South Discovery Area in part Blocks 48/19c, 48/19a and 48/20a is pleased to announce the signature of a Farm In Agreement with RWE Dea UK.

The Clipper South gas field was discovered in 1983 and appraised in 1992. Since acquiring the asset from Shell and Exxon Mobil in early 2008, Fairfield has executed a detailed technical and commercial evaluation of the field and is in the final stages of preparing a Field Development Plan for submission to DECC.

Fairfield has identified the optimum development scenario for Clipper South to be the use of horizontal multi-frac wells into the Permian Rotliegend reservoir. Multi-frac technology will improve greatly the ultimate recovery of gas from the field. This approach is now commonplace in North America and is being increasingly employed in the Southern North Sea.
Under the terms of the agreement RWE Dea UK will acquire a 50% share in Clipper South in return for carrying Fairfield through certain development costs. On completion the operatorship of Clipper South will transition to RWE Dea UK and the development will be executed by a joint project team.

Fairfield’s Chief Executive Mark McAllister said
“The signature of this agreement with RWE Dea UK marks an important milestone in Fairfield’s advancement. We are very pleased to have attracted RWE Dea UK to join us in the Clipper South project, particularlygiven their existing track record as an Operator in the Southern Gas Basin and their deep familiarity with multi-frac technology. The creative commercial approach employed by both parties to conclude this transaction will ensure the timely development of the significant Clipper South gas reserves and provide a welcome boost to the UK’s indigenous gas supply."

Fairfield was advised by Jefferies International Limited for this transaction.

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