OilVoice - Hansa Hydrocarbons farms in to German North Sea Licence

Hansa Hydrocarbons farms in to German North Sea Licence

Monday, March 02, 2009

Hansa Hydrocarbons Limited has agreed to farm-in to Wintershall Holding AG’s Licence B20 008/71 covering Blocks H15, H16, H17, H18, L1, L2, L3, L4 and L5 (the “H & L Blocks”) in the German sector of the Southern North Sea. Completion is subject to the receipt of German government consent.

Under the terms of the farm-out agreement, Hansa will earn a 20% working interest in the H & L Blocks in return for contributing on a promoted basis to the cost of a well to appraise the L1-Alpha discovery, scheduled to commence in late 2009. Wintershall will remain as operator and will retain a 40% working interest in the licence following a concurrent assignment of 40% to GdF Suez E&P Deutschland GmbH.

The H & L Blocks cover an area of 2240 km2 and contains several discoveries but due to a poor understanding of sand distribution and significant nitrogen presence, the area remains relatively under explored with no drilling activity for over 30 years. The L1-Alpha discovery was made in 1975 and proved gas in the Lower Rotliegendes sandstones with commercially acceptable levels of nitrogen.

John Martin, Hansa Hydrocarbon’s CEO, said:
“Entry into the H & L Blocks allows us to gain an important foothold in an under-exploited area of the North Sea where new technical insights can realise significant potential. We are delighted to be partnering with Wintershall, a leading operator across the Southern North Sea and who have an excellent regional knowledge of the area. At a time of uncertainty for European gas supply and lack of capital available to the energy sector, this farm-in is a timely reminder of the strength of our business plan and we look forward to building on our portfolio further in 2009”.

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