Under terms of the farm-out agreement, Stratic will fund 25% of the costs of the Ayazli-1 exploratory well to earn a 12.25% working interest in the permits that comprise 962,000 acres in the western Black Sea. Toreador is responsible for 75% of the Ayazli-1 costs and will retain a 36.75% working interest in the well, which is located on the South Akcakoca prospect.
As operator of the project, Toreador estimates the Ayazli-1's drilling costs at approximately $4.5 million and anticipates the well will be spudded in July in water depths of about 250 feet.
"We are pleased that Stratic Energy is participating in our exploration of this promising Black Sea acreage where we have identified six distinct gas prospects to date," said G. Thomas Graves III, Toreador President and Chief Executive Officer. "Stratic is an experienced explorer, and we look forward to a long-term working relationship with them."
TPAO, the Turkish national oil company, will be carried on the Ayazli-1 well for a 51% working interest and has an option to participate in additional wells on Toreador's Black Sea prospects on this acreage for a 51% working interest.
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