Rocksource Collects Equity in 8 Gulf of Mexico Leases
Rocksource has chosen to extend its corporate 'EM led' exploration strategy into the offshore Gulf of Mexico through an agreement with Focus Exploration LLC. Through this agreement Rocksource aims to accelerate its drill queue of EM positive prospects and create opportunities for short to medium term production growth and value creation. The deal gives Rocksource access to a portfolio of eight leases of which several with EM positive prospects.
Trygve Pedersen, CEO of Rocksource ASA commented, "These opportunities will add a tranche of prospectivity and short term drilling opportunities to the Rocksource portfolio. Several prospects are near field tie-back opportunities which could also be short to medium term production opportunities. This portfolio of leases gives us a very good foothold in one of the world's most prolific exploration basins with attractive fiscal terms, and adds to the Rocksource growth potential."
Through the subsidiary Rocksource Gulf of Mexico Corporation (RGOM), Rocksource has entered into an agreement with Focus Exploration to acquire equity interest in eight offshore leases. The leases include prospects where Controlled Source Electromagnetic (CSEM) data have already been acquired and where several prospects appear to have positive anomalies associated with them.
Following the acquisition, Rocksource will add approximately 30 million barrels of oil equivalent (mmboe) of net risked resources to its exploration portfolio. The company expects to participate in its first Gulf of Mexico (GOM) well in 2009, with a further follow up potential in 2010.
The agreement with Focus Exploration is part of a greater GOM strategy to combine successful use of seismic amplitude data with CSEM resistivity data to create a portfolio of low risk prospects. By applying CSEM, the GoM portfolio will be even further high graded with each prospect having both seismic and electromagnetic Direct Hydrocarbon Indicators (DHI's).
CSEM data is already acquired on all eight leases. The data are currently being processed, but three prospects already show well defined anomalies and represent very low risk drilling targets. There are several discoveries on the leases with contingent resources of 5mmboe net to Rocksource, where CSEM will be used to delineate extent. The subsidiary RGOM will gain a 10-30 percent working interest in the eight leases in exchange for an entry cost of approximately US $2 million. In addition Rocksource will evaluate the acquired CSEM data.
Focus Exploration is a highly experienced and successful GOM explorer. CEO Don Crider and President Mike Scherrer of Focus commented, "We are very excited about this partnership with Rocksource on these leases as well as on future, larger reserve projects. The Rocksource expertise with electromagnetic data processing and interpretation will significantly enhance our risk reduction capabilities in the medium to deep water Gulf of Mexico."
The farm-in agreement is pending final approval of all partners in the leases.