Cirrus Energy Corporation announced that its wholly owned subsidiary, Cirrus Energy Nederland B.V., has entered into an agreement with Wintershall Noordzee B.V. and Petro-Canada Netherlands B.V. to acquire their respective 66.9% and 33.1% interests in that part of the K10a license which contains the undeveloped K10-Bravo oilfield. The consideration for the acquisition is an over-riding royalty payable out of any future production revenues. Assuming government approval of the license transfer, Cirrus will become operator of the K10-Bravo oilfield with 100% working interest.
The K10-Bravo oil field is located under the existing K10-B production platform in 28 meters of water. The K10-B platform was installed in 1980 to process and export gas from a Permian Rotliegend reservoir. Upon cessation of gas production in 2003, part of the gas processing facilities were subsequently removed from the platform, but the platform structure, plus a number of suspended wells, has been left in place. Two of the gas field development wells encountered oil in overlying Triassic Bunter sandstones and Cretaceous Vlieland sandstones which had average porosities of 21% and 17% respectively. The K10-B2 well encountered the top of a 75m gross Bunter oil column at a true vertical depth of 1405m and was production tested in 1984 at rates up to 890 barrels of oil per day over a four month period. The K10-B7 well encountered the top of a 70m Vlieland gross oil column at a true vertical depth of 1410m and was tested at rates up to 336 barrels of oil per day. Both oils were 23 degrees API.
Cirrus expects to initially drill one or more step-out exploration and/or appraisal wells on the K10-Bravo oil field to assist in establishing the potential recoverable reserves from both reservoirs which is required to optimize any potential development scheme. It is currently expected that such drilling would be undertaken in the first half of 2009 using the already contracted Noble Lynda Bossler drilling rig.
"The K10-Bravo oil field provides Cirrus with an exciting opportunity to develop a proven oil accumulation," said Cirrus' President, David Taylor. "A particular advantage is the presence of the existing K10-B platform which may significantly reduce both the development cost and time to first production."
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