15th Sep 2014 10:16
LONDON (Alliance News) - Petroleum exploration and gas storage company InfraStrata PLC Monday said Larne Oil and Gas Ltd has exercised its option to acquire licence interests in onshore Northern Ireland licence PL1/10 and adjacent offshore licence P2123 in the Larne basin.
Back in July, InfraStrata signed an exploration agreement giving Larne Oil and Gas Ltd an exclusive option for interests at its onshore Northern Ireland licence PL1/10 and adjacent offshore licence P2123 in the Larne basin.
Larne Oil and Gas, is a subsidiary of US investment company Larne Basin Exploration LLC.
The agreement was made together with InfraStrata's joint venture partners Brigantes Energy Ltd and Terrain Energy Ltd.
In a statement Monday, InfraStrata Larne will fund a "disproportionate share" of the forthcoming costs for the proposed Woodburn Forest-1 exploration well in licence PL1/10, to earn a 50% interest in the licence.
Woodburn Forest-1 will be the first exploration well on the licence area since 1971. The company said it that drilling will take place during the first quarter of 2015. The prospect has three conventional sandstone reservoir targets in the Triassic, Permian and Carboniferous regions. Combined prospective resources for the Triassic and Permian reservoirs have been estimated by the joint venture at 40 million barrels of oil.
In adjacent offshore licence P2123, Larne will also get a 50% interest, by reimbursing its share of certain costs at the licence to the partners.
InfraStrata, the operator, will now hold a 20.83% interest in the licence interests in both PL1/10 and P2123, with Larne holding a 50% interest and Terrain holding 12.50%. The remaining 16.67% will be held by Brigantes, a company 40% owned by InfraStrata.
InfraStrata shares were up 6% Monday morning, trading at 8.88 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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