By OGJ editors
HOUSTON, May 17 -- Albion Petroleum Ltd., Calgary, will spend at least $10 million (Can.) on exploration wells to earn interests in three to five licenses off the UK under a farmout pending with Elixir Petroleum Ltd., London.
The companies signed a heads of agreement for the deal, which is subject to UK government approval and demonstration of Albion's financial capability.
Albion can earn varying interests from Elixir and partner Granby Oil & Gas PLC by partly funding the first wells in license areas P1211-P1288, P1212, P1209-P1404, P1208, and P1213.
Elixir expects the first well under the arrangement to be on Block 15/13b in the P1212 area on a prospect it calls Guinea and describes as "a robust, four-way, dip-closed Paleocene structure" on trend with Balmoral and Dumbarton oil fields. The block is 20 km northeast of Piper oil field in 150 m of water.
