By OGJ editors
HOUSTON, June 25 – Vermilion Energy Trust, Calgary, plans to acquire Marathon Oil Corp.’s 18.5% nonoperated interest in Corrib field off western Ireland.
Consideration is $100 million at closing plus $135-300 million depending on the date that the field starts commercial gas production. If production started by the end of 2011 as expected, the additional payment would be $190-200 million.
Vermilion will assume its share of future capital outlays needed to reach first production, likely to range up to $300 million net to the acquired interest.
Corrib, with 1 tcf of gas in place, is expected to produce more than 300 MMcfd for 2-4 years before a 20%/year decline ensues.
The field, in 350 m of water, is to produce from five wells that are being tied into a subsea template, and an onshore treatment facility is 75% complete. The license contains several other prospects, one of which, North Corrib, is being considered for drilling in 2010 at a cost of $10 million/well net to Vermilion.
Shell E&P Ireland Ltd. operates Corrib with 45.5% working interest, and StatoilHydro has 36%.