"We welcome VNG and its technical competencies to our partnership," said William L. Transier, chairman, chief executive officer and president. "As operator with a controlling interest in the block, we are committed to realizing as soon as possible the full potential of this area where two discoveries have already been made. VNG's involvement in Agat is a significant step forward in our strategy to strengthen our base in Norway and will help us accelerate the exploration and development of a region that has the capability to dramatically increase our reserve base."
In exchange for the working interests, VNG will assume certain carry provisions for exploration costs. The agreement is subject to approval by governmental authorities.
Last month, Endeavour announced that it would assume operatorship of PL270 from RWE Dea Norge AS and increase its working interest in the license. In exchange, Endeavour would transfer a portion of its interest in PL426 of which it was already operator to RWE Dea Norge AS. That agreement was approved by governmental authorities and will become effective August 31, 2007.
Following the completion of both transactions, Endeavour will be majority owner of both blocks with a 65 percent working interest. VNG Norge AS will hold a 20 percent working interest and RWE Dea Norge AS will own 15 percent working interest.
Endeavour estimates that PL 270 and PL 426 contain gross unrisked resources in excess of 1.6 trillion cubic feet of gas equivalent, including the Agat discoveries and other identified prospects and leads. The two blocks cover more than 100,000 acres in a prolific oil and gas trend north of the Gjoa Field and other nearby undeveloped gas resources.
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