Adriatic Oil reported Friday that it has agreed to farm into two blocks in the Inner Moray Firth area of the UK North Sea. The company is acquiring a 25-percent stake in Seaward Production Licence P1921 in relation to Blocks 12/18 and 12/19c, currently owned by Elixir Petroleum.
Adriatic also reported that it has secured an option to increase its stake in the license to 50 percent in return for an increased capital commitment.
The blocks are contiguous and are located approximately 90 miles northeast of Inverness, Scotland, in a water depth of approximately 250 feet. They lie to the northeast of the Beatrice oilfield and to the west of the Captain oilfield.
Elixir is targeting a single large stratigraphic prospect that has been identified in the Middle Jurassic Beatrice Formation on the northern edge of the Smith Bank High. This prospect is predicted to have Beatrice Formation sands as the reservoir, which has been identified as an acoustic impedance anomaly on several 2D seismic lines, according to Elixir.
"We are pleased to have secured an initial 25% Farm-In into these two Blocks, which complement our existing interests related to offshore Ireland. We are looking forward to working with Elixir with a view to progressing the potential oil prospect which Elixir has named the 'Sunset' prospect and which lies across the two Blocks towards drill ready status," Adriatic Managing Director Bruno Müller commented in a company statement.
Work obligations in relation to the license comprise the purchase of 3D seismic date and a 'drill-or-drop' decision needs to be made by early 2014.
The farm in has been approved by the UK's Department of Energy and Climate Change.
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