Italy

Orca Exploration Group Inc., Tortola, British Virgin Islands, will fund 30% of the cost to drill the Elsa-2 appraisal well in the Central Adriatic off Italy to earn a 15% working interest in the B.R268.RG permit.

By OGJ editors
HOUSTON, June 1
– Orca Exploration Group Inc., Tortola, British Virgin Islands, will fund 30% of the cost to drill the Elsa-2 appraisal well in the Central Adriatic off Italy to earn a 15% working interest in the B.R268.RG permit.
Under an agreement with Petroceltic International PLC, Orca will fund the well to a maximum of $11.5 million and thereafter will fund all future costs relating to the well and the permit in proportion to its participating interest. Orca will also pay Petroceltic 15% of back costs to a maximum of $500,000.

The well is to spud in the fourth quarter of 2010.

Agip SpA’s 1992 Elsa-1 well found a 65-m oil column in the Lower Cretaceous Maiolica formation at 4,500 m. Positive results from Elsa-2 will be followed by a 3D seismic survey over the field, Orca said.

Orca’s agreement with Petroceltic provides an opportunity for Orca to participate on a ground floor basis in 11 other Petroceltic-held exploration blocks in the Central Adriatic.

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