Energy Resource Technology Acquires 40% Interest in the Tiger Discovery
Energy Resource Technology has acquired a 40% working interest in the Tiger discovery (GC 195/196) in 1900' water depth through an exchange with Deep Gulf Energy LP (DGE). ERT traded a 15% working interest in the Bass Lite discovery (AT 380/381/382/425/426) in 7500' water depth for the 40% interest in Tiger. In the transaction, each party reimbursed the other for sunk costs, resulting in an approximate $1 million payment to DGE. No gain or loss was recorded by Cal Dive in the exchange.
The Tiger discovery contains Proved Undeveloped (PUD) gas reserves in a Pliocene age sand discovered in 2003 by the GC 195 #1 well. The Tiger field will be produced by a subsea tieback to the EW 947 platform. Cal Dive has contracted to DGE to perform the 20 mile tieback installation. Expected start of production is mid 2006 at a gross rate of 40 MMCFD.
Johnny Edwards, President of ERT stated, "Production from the Tiger field
will be the first from the portfolio of deepwater development projects
acquired in the last year. This portfolio also includes Tulane, Devil's
Island, Bass Lite and Telemark. The benefits of the trade are the
diversification of risk, the generation of additional Marine Contracting work
and early production, which will reduce capital expenditure and provide cash
flow in 2006."
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Company: Energy Resource Technology more info
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