Junior explorer and producer Northern Petroleum announced Thursday that has agreed to farm out an 80-percent equity interest in the Cascina Alberto permit, in the Po Valley onshore Italy, to Royal Dutch Shell. In return, Shell will pay Northern $850,000.
Northern said that the deal will also see Shell pay for the costs of the exploration campaign on the permit, which will include a carry on the acquisition of any new seismic data up to a cost of $4 million and a carry on any exploration well until the well costs reach $50 million. Shell will also have a pre-emptive right over Northern's remaining interest in the Cascina Alberto permit in the event of any change in control at the asset or
Northern CEO Keith Bush commented in a company statement:
"This farm in demonstrates the value inherent in Northern's Italian asset portfolio. Northern will continue to progress its permits and applications with the Italian authorities and partner with companies with larger resources, where appropriate, to maximize their value.
Have a news tip? Share it with Rigzone!
WHAT DO YOU THINK?
Click on the button below to add 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.
More from this Author
Most Popular Articles
From the Career Center
Jobs that may interest you