Petro River Oil Corp announced Wednesday that its Petro River UK Limited subsidiary has agreed to buy a nine-percent interest in the PL1/10 and P2123 licenses, which are located in the Larne Basin in Northern Ireland.
The two licenses, one onshore and one offshore, cover approximately 130,000 acres. Other parties to a farm-out agreement signed by Petro River include Southwestern Resources Ltd (a subsidiary of Horizon Energy), which will acquire a 16-percent interest, and Brigantes Energy Limited, which will retain a 10-percent interest. The remaining 65-percent interest will be owned by third parties.
Petro said that the Larne Basin has broad similarities to the highly prolific Carboniferous sourced East Irish Sea Basin to the southeast, which has produced over 200 million barrels of oil and four trillion cubic feet of gas. The initial well to be drilled as part of the farm-out agreement, the Woodburn Forest No.1, is permitted, funded and scheduled to be drilled in the first quarter of 2016. It will be drilled onshore to a depth of about 6,000 feet and will test the entire sequence of petroleum objectives, including the Carboniferous source. The well has prospective, un-risked, recoverable resources in excess of 30 million barrels of oil.
Petro River President Stephen Brunner commented in a company statement:
"This acquisition is consistent with our strategy of acquiring valuable assets in the current oil market. Due to historical political and geological issues that have now been resolved, the Larne Basin remains the only truly untested Carboniferous Basin in Europe. We are excited about drilling the initial well, Woodburn Forest No.1, early this year. The potential discovery would be a significant milestone for Petro River."
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