OilVoice - PA Resources Announces UK Farm Out Agreenent With Venture Production

PA Resources Announces UK Farm Out Agreenent With Venture Production

Monday, August 24, 2009

PA Resources UK Limited, a wholly-owned subsidiary in the PA Resources Group, has signed an agreement to farm out a part interest in Licence P1529 covering offshore Blocks 43/9, 43/10 and 44/6 in the UK Southern North Sea. Earlier this year, PA Resources increased its interest in the licence from 40 to 80 percent when a joint venture partner elected to withdraw.

Venture North Sea Gas Limited (Venture), a wholly owned subsidiary of Venture Production plc, will acquire a 48 percent working interest in the licence from PA Resources UK Limited and 12 percent working interest from PA Resources' partner, Spyker Energy SAS. PA Resources will retain 32 percent and Spyker 8 percent in the licence.

Under the terms of the farmout agreement, Venture will pay 100 percent of the costs of a 3D seismic survey over the Kennett lead to be operated by PA Resources with start in September 2009. After the survey is fully completed, PA Resources will transfer the operatorship to Venture.

The transaction is subject to approval of the Secretary of State for Energy and Climate Change in United Kingdom.

Ulrik Jansson, President and CEO at PA Resources AB, comments:
"We are pleased to have signed this farmout agreement and that we are being joined by Venture, who are an active and successful operator in the Southern North Sea. We look forward to progressing the exploration of the Kennett lead".

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