Drilling of North Sea exploration well 9/27a-4 has been completed.
The well encountered oil shows but no commercially producible hydrocarbons, and is to be plugged and abandoned. The well was drilled to a total depth of 6,085 feet (approximately 1,850 metres). Granby's participation in this well has earned the Company a 12.5% participating interest in the block.
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:
"Granby has a significant portfolio of high quality prospects in the North Sea. Although this well is a disappointment, our current farm-out negotiations are proceeding well with several offers already received which should secure finance for the relevant part of our exploration drilling programme."
Background
Exploration well 9/27a-4 was Granby's second exploration well since its flotation on AIM in June 2005, and was drilled on the Hendrix prospect, located 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 November, Granby agreed to farm in to the block to obtain a 12.5% participating interest by paying 25% (then estimated to cost approximately £ 1.26 million) of the well cost.