Kerr-McGee Acquires Block 16/21d in the North Sea

Veritas DGC, through its EAME Division affiliate Veritas Geophysical Limited, announced the successful farm-out of its Promote License for UKCS Central North Sea block 16/21d.

Block 16/21d is adjacent to the Balmoral and Dumbarton fields and near to the recent Brenda discovery. The block contains the presently abandoned Bladon oil field, and significant potential prospectivity has been identified using Veritas long-offset 3D seismic data.

Under the terms of the agreement, which remain confidential and are conditional upon certain events including governmental and regulatory approvals, Kerr-McGee will assume a 100% stake in the block, acquired by Veritas as a Promote License in the UKCS 21st Offshore Round.

Robert Hobbs, President of Veritas' EAME Division in London, warmly welcomed the deal. "This is an important step for Veritas, proving the concept of our Promote Round participation in the UK. New seismic data, technology and techniques hold the keys to renewed activity levels in the Central North Sea. Our seismic-based workflow has proved extremely popular with Kerr-McGee and many other companies, enabling us to identify entirely new prospects for future drilling. We will continue to advance our Promote acreage to the benefit of the North Sea industry and the UK economy as a whole."

"This agreement supports the growth of one of our emerging core areas in Quad 15 of the Central North Sea, and adds to our portfolio of exploration opportunities," said Terence Jupp, Vice President and Managing Director of Kerr-McGee North Sea (UK) Limited. "The acquisition also demonstrates our full support for the DTI's initiatives that are seeking to place high-potential acreage in the hands of operators who carry out active exploration programs."

Veritas retains 100% interest in eleven 21st and 22nd Round Promote Licenses covering twelve blocks in the UK Central North Sea.