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Exploration and Appraisal Drilling in 2015
The continued low rate of exploration and appraisal (E&A) drilling remains an area of serious concern. The number
of exploration wells drilled fell to 13 in 2015, a record low on the UKCS. However, those wells that were drilled
were relatively more successful than in recent years. Initial indications suggest that around 150 million boe were
discovered, the highest in four years despite fewer wells being drilled. As in previous years, most of the exploration
drilling was concentrated in the CNS region, although there was a notable pick-up in activity in the northern North
Sea (NNS) with four wells drilled, the most since 2012.
With such little recent exploration success, it was expected to be a slow year for appraisal drilling. While a total of
13 appraisals wells were drilled, ten of these were geological sidetracks.
In total, just 26 E&A wells were drilled, the lowest in 45 years. This emphasises the need for further action to
stimulate activity before critical infrastructure required to transport and process oil and gas is decommissioned.
Given the global collapse in exploration expenditure, the UK will need to transform its competitiveness if it is
to attract the funds it needs to sustain an appropriate rate of exploration. To replenish production, the annual
number of E&A wells spudded will need to increase three to four fold. This will take concerted action by industry,
government and the regulator to:
• Apply the latest technological advances in seismic data aquisition and interpretation
• Make better use of existing data by facilitating access across industry where possible
• Improve access to finance
• Continue to push for cost reductions, driven by falling rig rates and an initiative to halve well design costs
• Evolve the fiscal regime to rapidly address the balance of risk and reward when exploring on the UKCS
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