The leadership in U.K.-based oil company Venture Production has had to concede that the Block 48/15b Andrea exploration well may not contain oil and gas that can be removed in sufficient amounts for a large commercial development.

The Andrea gas exploration well No. 10 in the southern North Sea started the Noble Julie Robertson jack-up drilling on 6 June 2009. But at 10,200 feet total depth, the Leman standstone proved too “tight” and “water-wet”. Andrea raised expectations a week ago after finding gas.

Company chief exec Mike Wagstaff was upbeat after Andrea, saying a “multi-rig” drill programme remains for the rest of the year after a 2009 of replaced reserves. Some observers say that with Venture — the largest holder of exploration acreage in the U.K. North Sea — go the fortunes of the offshore U.K. industry.

Commercial development is still sought at Andrea, but “the tight nature of the reservoir is likely to constrain recoverable reserves” to the lesser end of pre-drill hopes that ranged on between 3 million barrels of oil equivalent and 44 MMboe.

“Consequently, any development of Andrea would most likely be in conjunction with the nearby Ensign field,” a statement said.

Next, the rig at Andrea will move to drill the East Annabel appraisal. Another rig is due to drill a wildcat in the East Irish Sea.

“We hope to add further successful wells in the second half,” said Wagstaff.

Tags: Venture Production plc