The acquisition is effective Jan. 1, 2007, and is only subject to consents from Norway's petroleum and finance ministries. The consents are expected during the course of the Second Quarter 2007.
The license PL 337, covering parts of blocks 15/11, 15/12 and 16/10, situated just north of the Varg field and south of the Sleipner field in the North Sea, covers an area of 674 square kilometers and contains several prospects and leads. The first two prospects to be drilled are the Storskrymten and Grytkollen prospects. An exploration well, to penetrate both prospects, is committed to be drilled by the partners. Ener's evaluation of prospective resources for the well is around 19 million barrels unrisked or 5 million barrels risked. Drilling is planned for the third quarter of 2007. The rig committed to drill the well is the jackup Mærsk Giant.
Pertra ASA is the operator for PL 337 with a 35% working interest. Other partners in the license, together with Ener, are Revus Energy ASA (30%) and Talisman Energy Norge AS (10%). Ener's gross contingent resources in undrilled prospects are by this acquisition estimated to increase to around 90 million barrels unrisked or 24 million barrels risked. Ener's gross exploration acreage held is after the acquisition 815 square kilometers.
Mr. Per Gunnar Loge, CEO of Ener, said:
"In addition to focusing on enhanced oil recovery efforts in producing fields, as in Jotun, Ener by this acquisition also strengthens its efforts towards increasing its reserve base for the future by acquiring acreage near infrastructure and by participating in near term drilling of prospective structures in such areas. As a result of the solid taxable income stream to Ener from the Jotun field, the cost for such exploration drilling will be covered by the pretax cash flow from the field.
"We are indeed encouraged to participate in drilling the upcoming well as early as in the third quarter this year. As it is intended that the well, which is placed with producing fields both to the north and to the south, shall be drilled through two separate structures, we consider the possibility of success for the well to be high."
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