North Sea Energy Corp. has agreed to pay 15% of the costs of drilling and completing the Basil well, which is currently being drilled in the Inner Moray Firth area, in consideration of which, it will earn a 10% interest in block 12/21c which is a portion of Ithaca's 100% owned License P. 1392. Subject to DTI and other approvals, the resulting interests in the well and prospect will be Ithaca 90% and North Sea Energy Corp. 10%.
Through the farm-in agreement, North Sea Energy Corporation has also been granted the right to participate on the same terms in Ithaca's Triton and Zeus prospects, should Ithaca decide to drill them in the future. The farmout is a part of Ithaca's strategy of reducing cost and managing risk while maximizing its ultimate interest in the project.
Lawrence Payne, CEO of Ithaca, commented: "We are delighted to establish this relationship with Energy North Sea which is a Canadian new entry into the North Sea. We look forward to a mutually beneficial relationship."
Ithaca Energy Inc. is an independent oil & gas company with exploration and development assets in the UK North Sea.
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