Block 47/9c Farm-in by Venture Production
EnCore Oil plc has announced that Nido Petroleum UK Limited ('Nido'), which is in the process of being acquired by EnCore, has entered into an agreement with Venture Production Company (North Sea) Limited ('Venture') whereby Venture will acquire a 45% interest in southern North Sea Block 47/9c from Nido. As a result, Nido will retain a 5% interest in the licence.
In addition, Venture has entered into an agreement with Corsair Petroleum (Southern North Sea) Limited ('Corsair') to acquire a further 45% interest in Block 47/9c (resulting in a total interest of 90%).
Venture will become operator of the licence and drill an appraisal/development well on the 1982 Barbarossa discovery. Venture will also be carrying the costs for Nido and Corsair through both the drilling and any testing activity.
DTI consent to the licence assignments has already been obtained and it is anticipated that an announcement will be made shortly by the DTI regarding the continuation of 22nd Round promote licences as traditional licences.
As announced on 25 October 2006, EnCore has entered into an agreement to acquire Nido, together with three other companies. These acquisitions are subject to the usual regulatory consents. Completion of these acquisitions is expected in the near future.
Alan Booth, EnCore's Chief Executive Officer, said:
"We are especially pleased to be entering into this agreement with Venture Production on 47/9c, as it enables us to extract some value from this asset which was otherwise due to be relinquished. As an established and successful UKCS operator and having secured a long term contract for a drilling rig, Venture brings proven capability to drill this well and in the event of a success, progress it to a speedy commercial development."
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