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SSE Plc Major Gas Discovery on Glendronach Prospect

SSE Plc (LON:SSE) noted that Total is today announcing a major gas discovery on the Glendronach prospect, which is located in the Greater Laggan Area, West of Shetland. The Glendronach discovery is operated by Total E&P UK with a 60% interest alongside partners Ineos E&P UK Limited (20%) and SSE E&P UK Limited (20%).

Total states that preliminary tests confirm good reservoir quality, permeability and well production deliverability, with recoverable resources estimated at about one trillion cubic feet (equivalent to around 10 billion therms). It expects that the discovery can be developed quickly with the existing infrastructure around the Edradour field and the Laggan-Tormore facilities of the Shetland Gas Plant, in which SSE also has a 20% stake.

SSE has a diverse equity share in over 15 gas producing fields across 17 licences in three regions of the UK Continental Shelf: the Easington Catchment Area; the Bacton Area; and the Greater Laggan Area, in which the Glendronach discovery is located. On 31 March 2018, SSE’s interests in these fields gave it gas reserves estimated at 1.9 billion therms on a net proven and probable basis (2P). The Glendronach discovery is in addition to those.

Martin Pibworth, SSE’s Wholesale Director, said:

“This discovery represents a major addition to SSE’s recoverable gas resources. Gas production assets are a natural complement to SSE’s interests in gas-fired power generation and gas supply to business customers. They are expected to add to SSE’s earnings from gas production in due course. In the meantime, we will continue to support exploration and appraisal activities around our existing assets.”