Canadian player Nexen has boosted its estimates for the Golden Eagle area, in the UK sector of the North Sea, saying it sees it as a major development project, adding that output from the Ettrick field is also on the rise.

In a statement released today, Nexen said that it believes the Gold Eagle area holds recoverable contingent resources of between 150 million and 275 million barrels of oil equivalent.

The Golden Eagle area includes Nexen's 34% operated interest in both the Golden Eagle and Hobby finds and its 46% operated interest in the Pink discovery.

Nexen added it will continue appraisal drilling in the area for the remainder of the year. It is currently evaluating development options.

Nexen boss Marvin Romanow said: "The Golden Eagle area is shaping up to be a significant development for Nexen and after Buzzard, it is the largest oil find in the UK North Sea in the last decade.

"Not only are the economics attractive, but with Buzzard at peak rates for the next five years or so, this development allows us to keep growing our presence in the North Sea."

The company added that the Ettrick field, which came on stream in the middle of last month at an initial rate of 20,000 barrels of oil equivalent per day, has recently been pumping at about 30,000 boepd.

This increase has allowed Nexen to test the design capacity of the floating production, storage and offloading vessel.

The company said that as production rates stabilise, it intends to optimise production from the field.

The nearby Blackbird discovery is being considered as a future tie-back to Ettrick, further enhancing the economics of this development.

Nexen operates both Ettrick and Blackbird with a 79.73% working interest in each.

Meanwhile, at the Scott/Telford development area, Nexen recently completed drilling a new step-out development well which hit 254 feet of high quality net oil pay.

Nexen is currently assessing the results to determine ultimate reserve additions and whether further drilling is needed to delineate the area further.

The well will be tied into the Scott platform and is expected to add incremental production of between 10,000 boepd to 15,000 boepd by the end of the year.

Nexen has a 72% stake in the field.

At Buzzard, a four week shutdown is under way for jacket installation and tie in preparation relating to the fourth platform.

Work is proceeding as planned and the platform jacket was successfully installed earlier this week.

Nexen expects to have the field back on stream by the middle of this month.