The Licenses are currently in the process of being merged by the Department of Trade and Industry. Under the farm out arrangements, Atlantic Petroleum is also farming out on the same basis, such that Fox Energy will acquire, in total, a 33.33% interest in the merged license. Granby will remain operator of the license and will retain a total 33.34% interest.
A high resolution 2D seismic survey is currently being acquired over the license area in order to confirm the prospect and to select a well location.
In consideration of the assignment, which is subject to the consent of the Secretary of State for Trade and Industry, Fox Energy will pay 100% of the costs of the seismic survey.
Granby and Atlantic have also granted Fox Energy an option to acquire an additional 26.67% of the license after completion of the high resolution seismic processing by paying 46.67% of the costs of an exploration well (in addition to Fox Energy's 33.33% obligation), thereby carrying 10% of the well costs for each of Granby and Atlantic. In the event that the option is exercised by Fox Energy, Granby and Atlantic would each retain a 20% interest in the license. The blocks contain Granby's Anglesey prospect which consists of a series of tilted Jurassic fault blocks. The blocks are located in around 130m water depth some 150 km north-east of St. Fergus and 30km north of the Claymore field.
David Grassick, Managing Director of Granby Oil and Gas, said, "Granby is pleased to welcome Fox Energy as a co-venturer in this license and to have the costs of our seismic acquisition and processing program for this license fully carried."
Richard Moreton, Executive Director, said, "Acquisition of the high resolution 2D seismic on the license is going well, and is important for defining a potential well location on the Anglesey prospect, which is a large prospect in the Outer Moray Firth."
Following completion of the farm-out arrangements and the assignment of interests in the merged license, the participating interests will be:
--Granby, 33.34% --Atlantic Petroleum, 33.33% --Fox Energy Exploration, 33.33%
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