10th Nov 2014 10:06
LONDON (Alliance News) - InfraStrata PLC, the independent petroleum exploration and gas storage company, Monday said it has been awarded one block from the UK Continental Shelf 28th Seaward licensing round with its joint venture partner and said it is looking to bring in additional partners to fund the next stages of the project.
InfraStrata and its partner, Carstone Exploration Ltd, were awarded block 3/11a by the UK Department of Energy and Climate Change. InfraStrata will be the operator of the license and will hold a 50% interest, with Carstone holding the remaining half.
The block contains the underdeveloped Oulton oil discovery, originally discovered over 40 years ago. It is estimated to contain around 16 million barrels of recoverable oil, and InfraStrata believes that modern offshore technologies will enable the Oulton prospect to be developed in the near future, it said in a statement.
InfraStrata will be working together with Carstone to introduce one or more partners into the project to fund the next stage of the block evaluation and ultimately the drilling of a new well to appraise the discovery and classify the resources, it said.
"We are very pleased with this success in the round. It is the first project which has resulted from our exploration new venture partnership with Carstone, announced in April this year," said Chief Executive Andrew Hindle.
InfraStrata shares were down 1.6% to 7.50 pence per share Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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