26th Oct 2018 09:54
LONDON (Alliance News) - Reabold Resources PLC said Friday its investee firm Corallian Energy Ltd signed a farm-out deal with Sydney-listed Talon Petroleum Ltd related to an offshore North Sea oil & gas licence.
Corallian - in which Reabold holds a 32.9% interest - signed the farm-out agreement with Talon for a 10% interest in Licence P2396, which contains the Curlew-A discovery.
Under the deal, Talon will pay 15% of the drilling costs - up to a maximum of GBP12.0 million - for an appraisal well at Curlew-A. After this, Tallon will pay costs in line with its 10% working interest.
Corallian currently expects to drill the appraisal well at Curlew-A in the second half of 2019. The well is anticipated to be drilled to a depth of approximately 2,700 metres.
The appraisal well is intended to initially de-risk 44.7 million barrels of oil equivalent 2C contingent resources. After this, it will target a deeper secondary objective in the Forties sandstone which was not previously encountered in the original discovery in 1977 by Royal Dutch Shell PLC.
"We are delighted that Corallian has participated in another high-value farm-out agreement," Reabold Co-Chief Executive Officer Sachin Oza said. "This demonstrates the strength of our strategy of investing at a company level as it gives Reabold exposure to a pipeline of new projects."
"Curlew-A is a perfect fit in our growing portfolio of low-risk, high-impact opportunities and we look forward to sharing operational progress from this appraisal program as it is achieved," Oza added.
Shares in Reabold were 4.6% higher at 0.78 pence on Friday.
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