EnCore Oil reports that the ENSCO 80 drilling rig has been contracted for the appraisal drilling of the Cobra discovery on UK North Sea block 48/2c. Due to early rig availability, the appraisal well will now be drilled in the first quarter of 2008.
The EnCore operated well will appraise the 48/2-1 gas discovery drilled by Amoco in 1984, which tested at a flow rate of 2.7 million cubic feet per day from the Rotliegend sandstone. The well will be managed by Applied Drilling Technology International (ADTI) which has over 20 years of experience in providing turnkey drilling.
EnCore also announces that it has entered into a farm-out agreement with Challenger Minerals (North Sea) Limited (Challenger Minerals) under which Challenger Minerals receives the right to acquire a five per cent. interest in southern North Sea Blocks 48/1b and 48/2c containing the Cobra discovery from EnCore. Under the terms of this farm-out agreement and together with the previously announced farm-out agreement with Tata Petrodyne and Bharat Petroleum, EnCore will pay for three per cent. of the appraisal well cost (subject to an overall well cost cap), and retain a 20%.
“The Cobra appraisal well presents EnCore with an opportunity to add material value and represents our first operated well,” said CEO Alan Booth. “Cobra lies close to existing infrastructure and offers a relatively low risk appraisal project some 300 feet up dip from the existing discovery well with significant upside potential.”
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