Cirrus Energy to Acquire Stake in Block A15 Offshore The Netherlands
Cirrus Energy has entered into an agreement with an independent oil company to acquire 100% of the issued capital of its wholly owned subsidiary in The Netherlands. The agreement is subject to normal due diligence and approvals and is expected to close in October.
The subsidiary's sole asset is a 24% working interest in the 400 km2 A15 exploration licence located in the northern portion of the Dutch continental shelf. Block A15 is operated by Wintershall Noordzee B.V. who hold a 27% working interest. This block contains an undeveloped shallow gas discovery which was appraised by well A15-3 in 1999 which tested an aggregate 23 mmscfg/d from six zones over the depth range 480 to 686m. Subsequently, a 3D seismic survey totalling 555 km2 was acquired in 2000. A third party engineering evaluation of the field was undertaken in 2001 which estimated most likely total gas-in-place of 127 bcf with gross recoverable reserves of 67 bcf (16 bcf net to the acquired interest). Development of several nearby shallow gas fields in adjacent blocks is underway with first gas expected in 2007. This will provide the necessary gas export infrastructure in the area for potential future development of the A15 pools.
This acquisition provides Cirrus with an established Dutch subsidiary
with undeveloped reserves which fully compliments the company's business
development strategy in The Netherlands.