Enegi, BSE Plan Newfoundland Drill

Junior explorer Enegi Oil reported Monday that it and its partner in Newfoundland, Canada, Black Spruce Exploration (BSE), plan to drill at least one of two new wells on production license 2002-01(A) this year after BSE concluded a technical due diligence review of prospects on the license area.

Drilling of the first well is expected to take place in the autumn, following the arrival of BSE's drilling rig in western Newfoundland. The drill form a part of Phase 1, which includes three appraisal and development wells and a re-work of an existing well on the Garden Hill Field.

Enegi added that it and BSE are continuing to work toward completing a definitive farm-in agreement.

EnegI CEO Alan Minty commented in a company statement:

"We are delighted that BSE agree with the need to drill at least one new well on PL2002-01(A) in 2013. BSE undertook a rigorous due diligence review of the company's technical data, using renowned experts in geology, geophysics, and reservoir engineering, and we are enthused that following this, BSE continues to share our long held view of the exceptional potential and prospectivity of our Newfoundland assets. 

"By committing to drill up to 12 wells for a 60-percent interest in Enegi's Newfoundland assets under the farm-in, and noting that the cost of each well will be significant, BSE has already demonstrated the inherent value of Enegi's Newfoundland assets.
"We look forward to working with BSE and providing further updates as activity on our acreage accelerates."

BSE CEO David Murray added:

"Based on the extensive data set that Enegi has acquired to date and the presence of a producing well in PL2002-01(A), with trade routes already established, we have taken the decision that it would be in the interest of all stakeholders to drill at least one well on PL2002-01(A) this year after the rig arrives in western Newfoundland this coming fall.

Have a news tip? Share it with Rigzone!
Email news@rigzone.com


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.


Our Privacy Pledge

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  ExxonMobil Starts Fuels Production at ... (Sep 21)
 -  How to Become a Safety Engineer (Sep 18)
 -  How to Become a Geologist (Sep 15)
 -  Oil, Gas Industry Leadership Group to ... (Sep 14)
 -  CB&I Wins China PDH Unit Contract (Sep 11)

Most Popular Articles

From the Career Center
Jobs that may interest you
Drilling Manager
Expertise: Drilling Manager|Drilling Superintendent
Location: Dallas, TX
Drill Rig Operator
Expertise: Driller|Drilling Foreman / Drilling Supervisor|Production Operator
Location: Hayward, CA
Tool Pusher
Expertise: Field Service Tech|Toolpusher
Location: Odessa, TX
search for more jobs

Brent Crude Oil : $56.86/BBL 0.76%
Light Crude Oil : $50.66/BBL 0.21%
Natural Gas : $2.959/MMBtu 0.30%
Updated in last 24 hours