International Frontier Resources to Participate in North Sea Exploration We
International Frontier has reached an agreement to participate in a North Sea exploration well. The Company will pay 15% of the 14/28-A well cost to earn 11.25% in three North Sea blocks (Quad 14 blocks 14/28a, 14/29b and 14/23b). The operator, Challenger, a wholly owned subsidiary of GlobalSantaFe has arranged, through ADTI to turn-key the well at a cost of US$10 million.
The Company also reports that it has entered into an option agreement with Palace Exploration (United Kingdom) Limited that allows IFR to increase its interest in Quad 14 acreage by 25%. In consideration for the option the Company will place US$500,000 in escrow. The escrow funds are refundable should the Company exercise the option to pay an additional 25% of the 14/28-A well costs. In the event the Company does not exercise the option the escrow funds will be released to Palace Exploration (United Kingdom) Limited.
The 14/28-A drilling location on the Laurel Valley Prospect was selected based on the interpretation of a recently acquired proprietary 3-D seismic survey shot jointly with Nexen. The well will evaluate prospective Cretaceous and two separate Jurassic oil reservoirs.
The addition of the Quad 14 acreage combined with the Company's recently
acquired North Sea block 12/17 complements the Company's strategy of
building a portfolio of high impact exploration opportunities in the
United Kingdom Continental Shelf to compliment its activities in the
Northwest Territories Canada.
- International Frontier: Northwest Territories Exploration Well Spuds (Feb 11)
- International Frontier to Drill North Sea UKCS, Anticipates 41 Million boe (Dec 20)
- Eternal Expects March Spudding for Quad 14 (Jan 24)