Rocksource to Take Stake in Block 211/7b in the North Sea
Rocksource UK Ltd, a subsidiary of Rocksource ASA has acquired a 25% working interest in Production license P.1378 (block 211/7b) on the UK Continental Shelf (UKCS) through a farm-in agreement with Capital Oil. The main prospect in the block potentially holds in excess of 100 mill barrels of recoverable oil. The prospects are ideally suited to testing with Rocksource's propriety EM technology.
The prospectivity in the block is currently high risk. Prior to the farm-in Rocksource performed modeling on the prospects and confirmed that the risk can be reduced by testing with electromagnetic (EM) technology. The forward work program is to prepare for an EM survey during 2007 in support of a decision to drill or not, by the end of the year as required by the terms of the Promote license.
Rocksource UK Ltd. will pay 25% of past costs to Capital oil, and cover the purchase of additional data. Rocksource will also perform the required work to further evaluate the prospectivity, and to prepare for EM acquisition on the block. After the execution of the farm-in agreement the block ownership will be Capital Oil 75% and Rocksource 25%.
Gregor Maxwell, Rocksource's Exploration manager states: "This is an excellent opportunity to apply our exploration technology on a very interesting prospect, in an under-explored section of the UK continental shelf. We believe that by applying our EM technology we can significantly adapt the prospect risk profile. We have agreed with Capital Oil that our approach and work process will be applied to the further testing of the prospectivity, and we are looking forward to working with them on this exciting project. This opportunity fits very well with our strategy of accessing exploration acreage in the North Sea where we can leverage our EM technology."
Guy de Caprona, Managing Director of Capital Oil states: "211/7b was awarded to Capital Oil in the 23rd licensing round. We are now very pleased to have Rocksource as our new partner in the license. We believe that the technical capabilities they bring to the partnership will enable us to test the prospectivity at a low costs, and enable us to have the best possible basis for making a drill or drop decision late 2007."
This transaction is subject to approval by the relevant UK authorities.