Elixir Petroleum Ltd has reached agreement with DNO ASA (DNO), for the DNO group to farmin to the Company’s 100%-owned UK Northern North Sea Block 211/22b.
Block 211/22b hosts a large Upper and Middle Jurassic prospect named Jaguar, which if hydrocarbon-bearing, has the potential to contain reserves of several hundred millions barrels of oil. Although this Upper Jurassic play has not been actively pursued in the UK Northern North Sea, an analagous play is proven on the Norwegian side of the median line.
The DNO group will secure a 60% interest in Block 211/22b by funding 92.5% of the costs of drilling an exploration well on Jaguar. Elixir will retain a final 40% interest in the block.
The well is expected to be drilled during 2006.
