Atlantic Petroleum announced today that it has farmed into UK Licence P1228, operated by Endeavour Energy UK Limited, subject to approval by the dti and government regulatory authorities. The licence was awarded in the 22nd Promote Round in December 2004 to Endeavour and Reach Exploration (North Sea) Limited, and consists of Block 30/23b. The licence has now been converted into a traditional licence with an outstanding work commitment of a contingent well.
Atlantic Petroleum has farmed into Endeavour's share of the licence and will earn 15% equity in the block once the well is completed. When the farm in is approved, the partnership for the block will be Endeavour 45%, Svenska Petroleum Exploration AB 25%, Reach 15% and Atlantic Petroleum 15%.
The licence block lies on the edge of the Central Graben of the North Sea. It contains the Balgownie and Cullen prospects.
A well is due to spud imminently on the Balgownie prospect, to test a Jurassic target. The operator carries mean reserves in excess of 50 MMBbls. The prospect lies SE of and on trend with the Janice & James Fields. The well will be drilled by the Global Santa Fe Galaxy II Jack-Up.
Commenting on the farm-in Wilhelm Petersen, Managing Director of P/F Atlantic Petroleum said:
“This farm-in is part of a drive to add new, high quality exploration assets to our portfolio, as part of the company strategy leading up to first production from current assets. The drilling of the Balgownie prospect is part of our 2007 drilling campaign which is potentially seven wells. We look forward to spudding the well and working closely with Endeavour and our other new partners”
Further Details
Further details can be obtained from Wilhelm Petersen, Managing Director, tel +298 350 100 (wilhelmp@petroleum.fo) or Teitur Samuelsen, Financial Manager, tel +298 350 100 (teiturs@petroleum.fo). This announcement will be available, together with other information about Atlantic Petroleum, on the company's website: www.petroleum.fo.
