19th Feb 2016 08:20
LONDON (Alliance News) - NU-Oil and Gas PLC on Friday said Marginal Field Development Co Ltd, in which NU-Oil has a 50% interest, has been granted a two-year lease undertaking in respect of its farm-in to the Helvick oil field and the Dunmore oil discovery offshore Ireland.
The two-year lease undertaking was granted by the Minister of State at the Department of Communications, Energy and Natural Resources of Ireland, effective from March 1, to allow for evaluation of low-cost development options.
The award of the lease undertaking triggers a staged 50% farm-in by MFDevCo, with an agreed work programme for staged equity participation, giving MFDevCo a 10% initial working interest assignment and further equity assignment of up to 40%, NU-Oil said.
"MFDevCo and the MFD Consortium's solutions have the potential to improve the commercial viability of fields and we look forward to them being utilised to advance Helvick and Dunmore for the benefit of all interest holders," Chief Executive Nigel Burton said in a statement.
Shares in NU-Oil were trading up 3.8% at 0.218 pence early on Friday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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