Black Rock Secures Funding for Monterey
Black Rock Oil & Gas Plc said that it has come to an agreement with Gemini Oil & Gas Fund II, L.P. ("Gemini") whereby Gemini will fund Black Rock's 15% share of the drilling and testing of the forthcoming 49/8c-4 Monterey appraisal well, in the Southern Gas Basin of the UK North Sea.
The Monterey Gas Field is estimated to contain 165 billion cubic feet of reserves. The well will appraise the commerciality of the field. Operated by Wintershall, the Monterey appraisal well is expected to commence drilling during early September and will take approximately 53 days to reach its projected total depth of about 4020 meters. If tested, it is estimated that it will take an additional 20 days to complete the well. The water depth in this location is about 35 meters.
Discovered in 1989, the field is located approximately 15 kilometers west of the Windermere gas platform and south of the Schooner and Ketch gas fields. The initial well, 49/8-2, intersected a 300 foot gross gas column reservoired in Carboniferous sandstones. Despite severe formation damage in the original well it flowed gas on test at a rate of 5 million cubic feet per day.
The level of funding guaranteed by Gemini is up to $US4.274 million (approximately £2.4 million). This funding is in return for an entitlement for Gemini to receive payments from Black Rock's future revenues from the Monterey Gas Field.
Ivan Burgess, Managing Director of Black Rock Oil & Gas plc, commented:
"The agreement with Gemini is excellent news as it allows us to fund our interest in the field without recourse to shareholders, yet retain a significant proportion of the potential cashflow. The field has been drilled previously and there are known, quantified reserves of gas so we are optimistic regarding the outcome.
"In both Colombia and the North Sea we have deliberately chosen highly prospective
acreage and experienced partners. As a result we believe that the outlook for the
Company continues to improve and the Board has never been more positive
regarding its prospects."
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