Chrysaor E&P Ireland Ltd. will become operator of the FEL 2/04 and FEL 4/08 licenses and the 11/2 licensing option in the Porcupine basin 200 km offshore western Ireland and will drill two appraisal wells near the Jurassic Spanish Point gas-condensate discovery.
The partners agreed to transfer operatorship to Chrysaor, subject to approval of Irish authorities. Chrysaor’s equity in the two licenses will double to 60% in return for drilling one or two appraisal wells. Providence Resources PLC and Sosina Exploration Ltd. will retain 32% and 8% interest, respectively, and Chrysaor will cap their financial exposure to appraisal drilling costs.
The 2/04 license, in 400 m of water, also contains the Lower Cretaceous Burren oil discovery. Spanish Point’s recoverable resource is as much as 200 million bbl of oil equivalent, and the FEL 2/04 partners pointed out that drilling is also planned in 2013 at the Dunquin exploratory prospect south of Spanish Point.
The just approved 2012 budget includes funds for well design. The initial appraisal well is to spud in the third quarter of 2013 subject to rig availability and governmental approvals.