UNION TEXAS ENTERS ITALIAN PLAY

A unit of Union Texas Petroleum Holdings Inc., Houston, has agreed to acquire interests in three exploration tracts in the southern Apennines oil play of southern Italy. Three transactions cover a combined 217,000 acres in the Basilicata region, a geological province that includes Monte Alpi oil field operated by the exploration and production unit of Agip SpA, Milano, Italy,

Feb. 27, 1995

2 min read

A unit of Union Texas Petroleum Holdings Inc., Houston, has agreed to acquire interests in three exploration tracts in the southern Apennines oil play of southern Italy.

Three transactions cover a combined 217,000 acres in the Basilicata region, a geological province that includes Monte Alpi oil field operated by the exploration and production unit of Agip SpA, Milano, Italy,

Union Texas Adriatic Inc. (UTA) is to become operator with a 4217, interest acquired from Italmin Petroli Srl in the 29,150 acre Serra Corneta permit area. UTA also is to receive a 33.33% interest from Lasmo Italia Sud SPA in the 90,000 acre Tempa dei Mercanti permit and a 20% interest from Lasmo International Ltd. in the 97,560 acre Forenza block.

The tracts lie near the route of a proposed crude oil pipeline scheduled to begin moving oil in 1997 from fields in the region to the Italian port city of Taranto on the Gulf of Taranto.

Subject to approval of the Italian government, Italmin Petroli is to retain an 18% interest in Serra Corneta, with Pict Petroleum plc holding 40%. Other Tempa dei Mercanti interest owners are to be operator Edison Gas and Lasmo Italia Sud, each with 33.33%. Forenza operator Lasmo International will retain a 20% interest in the permit area, where other interest owners are Fiat Rimi SpA with 30% and Fina Italiana SpA and Canada Northwest Italiana SpA 15% each.

UTA said geological reconnaissance of the three areas, including seismic surveys, is to begin this year. Depending on results of geological studies and seismic data interpretation, exploratory drilling could begin as early as 1997-98.

UTA has applied to the Italian government for a fourth exploration permit covering an area of undisclosed size southeast of Monte Alpi field and adjacent to the Serra Corneta and Tempa dei Mercanti permit areas.

(Table)