Under the terms of the agreement, Stratic has committed to fund the acquisition of seismic data together with related technical interpretation work up to a maximum of Euro 1 million in exchange for the options to drill a single well on each permit to earn a 50% working interest in both permits. Stratic's total commitment, if the options on both permits are exercised, is Euro 9.05 million. At this time, both Northern Petroleum and ATI Oil, who currently each hold 50% of the licenses, will have their interest decreased by 25% respectively, with Northern Petroleum (UK) Ltd retaining operatorship.
The Longastrino and Savio licenses are located in the prolific Po Valley area near the eastern coast of northern Italy, adjacent to Grove Energy's San Marco acreage upon which the Abbadesse gas discovery has recently been made. Furthermore, in 2002, the Agosta gas field was discovered by ENI on a license adjacent to Longastrino. Nine stratigraphic leads in the acreage have been identified and further seismic data over the next six months will be acquired to enable these leads to be firmed up for drilling in 2007.
Derek Musgrove, Managing Director or Northern, commented,
'We are delighted to welcome Stratic as partners to two of our Italian licenses. The Directors' past experience of success in Italy, with Enterprise Oil, which was taken over by Shell, is certain to make a valuable contribution to our combined efforts.'
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