Well planned on Morpheus prospect in UK North Sea

Ithaca Energy Inc. reported plans for a well targeting the Leman sandstone to spud on the P1245 license in the UK North Sea. Ithaca holds 60% in the prospect.

By OGJ editors
HOUSTON, Apr. 2 -- Ithaca Energy Inc. reported plans for a well targeting the Leman sandstone to spud on the P1245 license in the UK North Sea. Ithaca holds 60% in the prospect.

License P1245 covers Blocks 48/3a and 48/4 and includes the Morpheus gas prospect.

Ithaca and 40% interest partner WHAM Energy PLC farmed out a portion of the license to Tullow Oil PLC and Dana Petroleum PLC.

Tullow will become operator of the well and will supply a drilling rig. It plans to spud the well before Mar. 30, 2008, subject to rig availability.

Under terms of the farmout, which is subject to approval by the UK Department for Trade and Industry, Dana and Tullow will each pay 33.335% of the costs for the well and for a 3D seismic program that Ithaca and WHAM conducted in 2006. The farmees will each earn a 25% interest in the license. Ithaca will retain 34% interest by paying 25% of the well cost, and WHAM will retain a 16% interest by paying 8% of the well costs.

Basil, Athena wells
Meanwhile, Ithaca reports it has secured the GlobalSantaFe GSF Galaxy II jack up to drill its Basil prospect on Block 12/21c in the Inner-Moray Firth in the North Sea beginning this month. Ithaca plans to use the rig later this summer at a second location, which is not yet determined.

Separately, at Ithaca's 70%-owned Athena oil project, the company recently completed a pipeline route survey between Athena and the Talisman Energy Inc.-operated Claymore oil field facility. The survey was to gather environmental and geotechnical data for the project's environmental statement. The development plan for this project is expected to be submitted in the third quarter.

Also, Ithaca and Talisman have jointly initiated engineering studies for services to receive and process crude oil from Athena.

Ithaca also has a draft agreement with Dolphin Drilling Ltd. for use of the Byford Dolphin semisubmersible to drill the second appraisal well at Athena this summer. If successful, Ithaca plans to case and suspend the well for production at a later date. Subject to the results of the well and rig availability, a third well on this prospect also may be drilled this year.

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