18th Jul 2014 10:24
LONDON (Alliance News) - InfraStrata PLC Friday said it has 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.
The petroleum exploration and gas storage company, said it, together with Brigantes Energy Ltd and Terrain Energy Ltd, has signed the agreement with Larne Oil and Gas, a subsidiary of US investment company Larne Basin Exploration LLC.
Under the terms, Larne has an exclusive option for interests in both sites. To earn a 50% interest in the PL1/10 licence it will fund a disproportionate share of the forthcoming costs of the proposed Woodburn Forest-1 exploration well.
It will also get a 50% interest in the P2123 licence by reimbursing its share of certain costs at the licence to the partners.
If the option is exercised them InfraStrata will hold 20.83%, Brigantes will hold 16.67%, Terrain will hold 12.5% and Larne will have acquired a 50% stake.
Woodburn Forest-1 will be the first exploration well on the licence area since 1971, a prospect with 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.
"We are very pleased to welcome Larne to the joint venture as we enter the next very exciting phase of exploration in the Larne-Lough Neagh Basin of Northern Ireland," Chief Executive Andrew Hindle said in a statement. "Work on the necessary consents is progressing with a view to drilling the well before the calendar year end.
Infrastrata shares were up 2.9% to 9.00 pence on Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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