Uchenna Izundu
International Editor
LONDON, June 19 -- Granby Oil & Gas PLC has agreed to farm out to Fox Energy Exploration Ltd. a 16.66% interest in Granby's UK continental shelf Blocks 14/9a and 14/14b, which contain the Anglesey prospect. Anglesey consists of a series of tilted Jurassic fault blocks in waters 130 m deep, some 150 km northeast of St. Fergus and 30 km north of Claymore field.
Fox will pick up another 16.66% interest from Atlantic Petroleum, bringing Fox's stake in the blocks to 33.33%. Once the transaction is completed, the participating interests in the merged license will be: Granby 33.34%, Atlantic Petroleum 33.33%, and Fox 33.33%.
Fox eventually could own as much as 60% of the fields, however. Granby is shooting a high-resolution, 2D seismic survey over the license area to confirm the prospect and choose a well location. Fox will pay for the survey, Granby said.
Fox can increase its stake in the license by an additional 26.67% after the seismic data is processed. Fox will pay 46.67% of the exploration well's costs if it chooses this option. This will be in addition to its 33.33% obligation, meaning it would fund 10% of the well costs for Granby and Atlantic each. If Fox exercises this option, "Granby and Atlantic would each retain a 20% interest in the license," Granby said.
The UK Department for Trade and Industry is merging the licenses because the Anglesey prospect straddles both licenses, which are being converted from promote to traditional status.
Granby will remain operator.
Contact Uchenna Izundu at [email protected].
