DNO Re-enters the UK Continental Shelf
DNO has entered into a binding letter of intent with Elixir Petroleum Ltd. to take a 60% working interest and operatorship in Block 211/22B located in the northern North Sea of the UK continental shelf.
DNO will secure a 60% working interest and operatorship in Block 211/22B by funding 92,5% of the costs of drilling the exploration well on the Jaguar Prospect during 2006. Elixir will retain a final 40% working interest in the block.
Block 211/22B hosts a large upper Jurassic prospect named Jaguar, which if hydrocarbon bearing, has the potential to contain oil reserves of several hundred million barrels. "We are pleased with this new transaction, which is in line with DNO's strategy of adding new reserves at low costs through smart exploration", says managing director of DNO, Helge Eide.
Through this transaction DNO will be re-entering the UKCS. A formal farm in agreement is expected to be signed by late June 2005. The transaction is subject to all necessary approvals by UK authorities.