Granby Oil & Gas plc announces that drilling operations have commenced on the Watling prospect on block 42/28c ('spudded') on 18th December 2006. The well is targeting a Rotliegendes reservoir with significant gas potential and will be drilled to a total depth of approximately 3,100 metres. The well is being drilled by the ENCSO 92 rig and is operated by Centrica Resources Limited. Drilling operations are expected to take around 30 days.
Centrica and Gas Plus will together fund the cost of the well to earn a 50% and 16.67% interest respectively in the 42/28c block. Granby has the remaining 33.33% interest in the block and its share of costs will be fully carried by Centrica and Gas Plus.
David Grassick, Managing Director of Granby Oil and Gas, said: "This is Granby's first exploration well in the Southern North Sea where we now have an expanding portfolio of drillable prospects, as well as our interest in the Tristan NW development."
Richard Moreton, Director of Granby Oil and Gas, said: "Watling is our first 23rd round prospect to be drilled, and we are now actively engaged on farming out several other prospects from our portfolio to expand our exploration drilling programme."
This exploration well on block 42/28c is Granby's third exploration well since its flotation on AIM in June 2005, and the Company's first in the Southern North Sea. The block was initially awarded to a Granby-led group in the 22nd Licensing Round. Centrica and Gas Plus subsequently agreed to farm in to the block, leaving Granby fully carried for the cost of this exploration well. Granby since acquired an additional interest from the original co-venturer to increase its carried interest to 33.33%.
Interests in block 42/28c are as follows:
Centrica Resources: 50.00%
Granby: 33.33%
Gas Plus Group: 16.67%
