Granby, Dana Petroleum to swap North Sea assets

Granby Oil & Gas has taken a 9% interest in Monkwell gas field on Block 42/29a in the UK Southern North Sea after signing a binding heads of agreement with Dana Petroleum (E&P).

Jan. 8, 2007

2 min read

Uchenna Izundu
International Editor

LONDON, Jan. 8 -- UK company Granby Oil & Gas has taken a 9% interest in Monkwell gas field on Block 42/29a in the UK Southern North Sea after signing a binding heads of agreement with Dana Petroleum (E&P) Ltd., Aberdeen.

Granby is awaiting final approval from UK Sec. of State for Trade and Industry Alistair Darling to conclude the deal.

Monkwell field has two separate dry gas accumulations, and it produced gas at 26.8 MMcfd from lower Leman sandstone when it was discovered in 1989. Two other appraisal wells have also produced gas.

Granby offered Dana the option to secure a 13.5% interest in Block 42/28c where a well is being drilled on the adjacent Watling sandstones gas prospect. Granby said Dana must exercise the option within 20 days of the rig's demobilizing from the well location. If Dana exercises the option, Granby will retain a 19.83% interest (15.83% net of royalty) in Block 42/28c. "Granby's interest in Monkwell field is not dependent on Dana exercising this option," Granby said.

If Monkwell proves commercial, Watling could be developed along with it, Granby added. Centrica and Gas Plus Italiana farmed in to the block last August, with Centrica assuming operatorship of the well, which is drilling to 3,100 m TVD.

Dana plans to produce Monkwell gas from one well in Monkwell Central, but a future well may drain Monkwell South West. Monkwell will be a subsea tie-back to the BP-operated Cleeton gas processing and transportation infrastructure, and Dana is working on engineering studies for its proposal.

Contact Uchenna Izundu at [email protected].