EnCore acquires Irish, Dutch E&P interests
Uchenna Izundu
International Editor
LONDON, Apr. 25 -- EnCore Oil PLC, London, has farmed in to two Island Oil & Gas PLC gas discoveries off Ireland and one of Island's oil fields off the Netherlands for $6.2 million.
"In addition, Island has acquired options to take 15% of EnCore Oil's equity in the Bennett Carboniferous prospect within UK license Block 43/15a and 30% of EnCore's equity in the Nimes permit application onshore France, subject to certain conditions," EnCore Oil said. These deals are part of an agreement the companies signed last October (OGJ Online, Oct. 9, 2006). EnCore deposited $4 million and for this farmin will pay the outstanding $2.2 million.
Dublin-based Island said it will "only exercise the options in the Southern North Sea and France if there is an opportunity to farm out for a fully carried interest in any future work programs."
Irish assets
EnCore picked up a 15% share in part of Block 49/23 off Ireland, which contains the Old Head of Kinsale gas discovery. Island, which earlier farmed out a 20% interest in the area to Valhalla Oil & Gas Ltd., plans to drill an appraisal well in mid-May with the Petrolia semisubmersible rig (OGJ Online, Apr. 12, 2007). The gas discovery is 25 km from Marathon Oil's gas production facilities at Kinsale field. EnCore can also acquire an additional 5%.
The company also has a 12.5% stake in Irish Blocks 57/1 and 57/2, which contain Schull gas field and other structures. Schull lies 43 km southwest of Seven Heads gas field in the Celtic Sea and the associated infrastructure linking Seven Heads to the Kinsale Alpha platform.
Island will drill an appraisal well on Schull immediately after drilling the Old Head well. EnCore also has an option to acquire an additional 7.5%.
Netherlands interest
EnCore will become a 10% shareholder in the Q13 production license off the Netherlands that covers 30 sq km and contains Amstel field, a Lower Cretaceous discovery. Three development wells are scheduled for 2008, and EnCore may increase its share by 5%.
Island has given EnCore until Jun. 30 to gain up to 20% in the Connemara license on the Atlantic margin 150 km off western Ireland in the Porcupine basin. The Connemara test well flowed 5,589 b/d from Jurassic reservoirs in 1979. In 1997 Statoil drilled two horizontal wells and estimated that it has 220 million bbl in place. It gave up the license in 1999 because of low oil prices.
Contact Uchenna Izundu at [email protected].