Granby Oil and Gas plc reports that the Farm-in Agreement covering North Sea exploration well 9/27a-4 has been completed with Century Exploration (UK) Ltd.
The drilling rig is now under contract and is being towed to the well location. The rig is expected to start drilling operations on or around 23rd December 2005 targeting a Tertiary reservoir (the ‘Hendrix’ prospect). The Hendrix prospect has significant oil potential and will be drilled to a total depth of approximately 1,850 metres. The well is being drilled by the rig ‘Bredford Dolphin’ and is operated by Century Exploration (UK) Ltd. Drilling operations are expected to take around 3 weeks.
David Grassick, Managing Director of Granby Oil and Gas, said:
“We are pleased to have brought forward Granby’s second North Sea exploration well in advance of the multi well programme planned for next year on our exploration portfolio.”
Richard Moreton, Director of Granby Oil and Gas, said:
“Hendrix is an exciting prospect in which we are pleased to be participating. The prospect is located within an area that we have been interested in for some time. Granby’s participation in this well is consistent with our exploration strategy for the Central North Sea and enables the company to advance its drilling programme for this area.”
Background
Exploration well 9/27a-4 is Granby’s second exploration well since its flotation on AIM in June 2005, and is being drilled on the Hendrix prospect, which is a submarine fan complex located just to the west of the Viking Graben in the North Sea. The block was initially awarded to Century Exploration (UK) Limited in the recent 23rd Licensing Round. In a deal announced in November, Granby agreed to farm in to the block to obtain a 12.5% participating interest by paying 25% (approximately £1.26m) of the well cost, subject to approval of the Secretary of State for Industry and execution of a Farm-in Agreement.
Interests in block 9/27a are as follows:
Century Exploration (UK) Limited (Operator): 87.5%
Granby Enterprises North Sea Ltd: 12.5%