Junior explorer InfraStrata announced Friday that its Northern Ireland joint venture has signed a farm-in deal with Larne Oil and Gas with respect two licenses in the province.
The deal sees Larne purchase an exclusive option to farm into both licenses: onshore license PL1/10 and adjacent offshore license P2123. If the option is exercised, Larne will fund a disproportionate share of the forthcoming costs for the proposed Woodburn Forest-1 exploration well on license PL1/10 to earn a 50-percent interest in the license.
Woodburn Forest-1 will be the first exploration well on the licence area since 1971, a prospect with three conventional sandstone reservoir targets in the Triassic, Permian and Carboniferous. Combined prospective resources for the Triassic and Permian reservoirs have been estimated by the joint venture at 40 million barrels of oil.
Larne – a recently-formed US-based investment company – is working in partnership with UK-based oil explorer Ardent Oil, which is providing Larne with technical support.
Assuming the option is exercised before mid-September this year InfraStrata (the operator) will have a 20.83-percent stake in the licenses, Brigantes Energy will have 16.6 percent, Terrain Energy will have 12.5 percent and Larne will have 50 percent.
Commenting on the deal, InfraStrata CEO Andrew Hindle said:
"We are very pleased to welcome Larne to the joint venture as we enter the next very exciting phase of exploration in the Larne-Lough Neagh Basin of Northern Ireland. Work on the necessary consents is progressing with a view to drilling the well before the calendar year end. Larne working together with Ardent brings to the project many years of oil and gas investment and technical experience in the U.S., the North Sea and Europe together with a strong investment base."
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