PRD, GDF Suez to redevelop Northwest German oil field

PRD Energy Inc., Calgary, will take a farmout from GDF Suez E&P Deutschland GmbH to earn an interest in the Boerger-Werlte oil pool in Lower Saxony, Germany, which is to be redeveloped.

PRD will act as a drilling and completion subcontractor to operator GDF Suez in order to earn a 50% participating interest in Boerger upon funding all of the costs associated with drilling, completing, and testing of one productive reentry well estimated at €2.5 million and up to €800,000 of the costs associated with a 20 sq km 3D seismic program.

Boerger produced 950,000 bbl of 34° gravity oil before being suspended in 2003. The reentry well is expected to be drilled to less than 2,000 m true vertical depth to target the Malm formation, a highly permeable and porous conventional zone with a history of oil production. The field has four other productive zones at less than 2,300 m that are considered potentially productive by applying advanced technologies.

GDF Suez and PRD will share the well’s production equally. It is anticipated that the reentry and seismic will be completed, tested, and interpreted on or before the end of the first quarter of 2013.

PRD recently announced the granting of exploration and production permits in Germany totaling 266,000 acres in which it holds a 100% working interest. The company is negotiating to acquire data that would accelerate its ability to redevelop abandoned oil fields.

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