By OGJ editors
HOUSTON, Jan. 19 -- Burren Energy PLC, UK, is expanding its exploration operations into Yemen and Oman.
By the end of February Burren expects to have parliamentary approval for a production-sharing agreement it signed with the Yemeni Ministry of Oil and Minerals for Block 6 in the prolific Shabwa basin.
The 3,900 sq km block lies east of major oil and gas producing areas, previously operated by Hunt Oil Co., and west of Block S2, for which OMV AG recently received government approval to develop a 170 million bbl oil field in fractured basement reservoirs.
Burren will operate the block with a 92% interest. Delta High Advanced Co. Ltd. holds 3% and Yemen General Corp. for Oil & Gas, 5%.
Burren will focus on the basement potential on Block 6, which has not been explored by previous operators. It plans to acquire 3D seismic data over the most prospective area this year and target the basement structures for drilling in 2007.
Burren will fund, and recover from cost oil, 100% of all costs until payback. It will pay a 5% royalty interest in the profit oil to its Yemeni partners.
Meanwhile, Hunt Oil subsidiary Oman Hunt has agreed to farm out a 40% nonoperated interest in offshore Block 50 to Burren, subject to government approval.
The 16,680 sq km block, operated by Oman Hunt, lies in up to 100 m of water in the Arabian Sea in the Masirah basin, which has similarities to the prolific oil and gas basins onshore Oman.
Previous drilling in Block 50 confirmed the presence of an active petroleum system, but poor seismic data quality has prevented the definition of drillable structures. Burren will acquire detailed, high-quality 2D seismic data over potentially large structures to decide on a drilling program at yearend.
