Monarch Resources reported that the proceeds from a recent private placement will be used for the Company's share of the cost of further development of Block 15/18a in the UK North Sea and for working capital.
Monarch Energy Limited paid 11.11% of the cost of the recent Maria 15/18a-12 discovery well to earn an 8.33% interest in the entire block 15/18a. The Maria 15/18a-12 discovery well encountered a 60 foot hydrocarbon column in the targeted Paleocene Lower Forties reservoir. The column consists of 45 feet of oil pay and a 15 foot gas cap. Reservoir sands are described as excellent quality. A modular formation dynamics testing tool provided samples of both oil and gas in the Lower Forties. The oil-water contact in the 15/18a-12 well appears to be the same as the contact established in the 15/18a-8 well drilled one kilometer to the south-east thereby establishing one continuous pool. The pool is within the same Paleocene channel trend as the MacCullough and Brenda fields.
The 145 sq. km. (35,800 acres) Block 15/18a into which the Company has earned also contains a large Jurassic prospect in addition to two fallow Jurassic discoveries, one of which tested 6650 barrels of oil per day and 10,000 MCF of gas per day.
In addition, the 3-D seismic survey in UK North Sea Quad 30 has been completed and will now be processed and interpreted. Monarch is paying 20% of the cost of the 3-D seismic survey and 13.33% of the cost of drilling a test well to earn a 10% interest in a 422 square kilometer (approximately 104,000 acre) block located in Quad 30 in the UK North Sea. Recently acquired seismic indicates the block contains several Jurassic and Permian plays. A well drilled into one of the Jurassic plays logged oil before the well was abandoned due to insufficient zone thickness. 3-D seismic on the block indicates that the Jurassic thickens to the northwest of that well. Lundin Petroleum AB is the operator of this project.
As part of its continuous active exploration program in the North Sea, Monarch continues to review other North Sea exploration projects.
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