PA Resources has acquired the company REAP 29/25 Ltd, which has a 100 percent working interest in the exploration licence P1318 located in the North Sea, offshore United Kingdom. Simultaneously, PA Resources has assigned 50 percent of the licence to Dove Energy. The net acquisition cost amounts to approximately SEK 1.4 million.
PA Resources' British subsidiary Scotsdale Petroleum Ltd has acquired the company REAP 29/25 Ltd, which has a 100 percent working interest in the exploration licence P1318, located in the West of Auk Basin, in the Central Graben area of the North Sea, offshore United Kingdom. The purchase-sum amounts to approximately GBP 227,000 (equivalent to approx. SEK 2.7 million).
Simultaneously with this acquisition, Scotsdale Ltd has assigned 50 percent of the licence P1318 to Dove Energy Ltd for half the above consideration paid by Scotsdale Ltd, resulting in a net acquisition cost of approximately GBP 114,000 (equivalent to approx. SEK 1.4 million).
The licence P1318 covers Blocks 29/18b, 19b, 24 and 25 in the Quadrant 29 of the British part of the North Sea.
The licence is located immediately south of Scotsdale's licence P1319 in Block 29/20c and covers an area of approximately 600 square kilometres. All of these blocks were awarded in the 23rd Round as promote a creage and have recently been extended into the "traditional" phase for work programmes that include seismic acquisition and drilling. Scotsdale has been approved by the Department of Business, Enterprise and Regulatory Reform (BERR) as the operator of both the licences mentioned above, as well as the two licences P1342 (Block 17/4) and P1336 (Blocks 43/14b and 43/15b).
The acquisition adds significant prospectivity in the region, where the Company has mapped several interesting leads and prospects at various geological horizons.
"This acquisition represents a significant step forward in our exploration efforts in the West of Auk Basin. It also
demonstrates our companies' commitment to the British continental shelf and our intention to continue to add prospective acreage," says Ulrik Jansson, President and CEO of PA Resources, Scotsdale's parent company.
Scotsdale has plans to acquire new seismic data in both these licences during 2008 with the intention of makin g drilling decisions in early 2009.
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