Revus Stepping Up Exploration Activity
The main highlight for Revus Energy ASA in the second quarter was the start of its extensive exploration drilling campaign on the Norwegian Continental Shelf. The company plans to participate in 12-16 wells during the next two years, spending NOK 1.2 billion on exploration. During the second quarter the company also announced its first step into the UK through a farm-in agreement with Sterling.
Q2 Highlights: -Production in the second quarter was 1,902 boepd
-An average oil price of USD 69.13 was realised in the second quarter
-Revus drilling campaign underway with Lie well spudding
-Yme PDO approved by Norwegian authorities
-First farm-in deal announced on UKCS with Sterling and Encore
-Agreement to acquire Statoil's interest in Murchison and PL037D
-Agreement to sell 15 per cent of PL 274 including the Oselvar discovery to Noreco at a significant premium to original purchase price
Harald Vabo, CEO of Revus, says; "The company has now started its large and exciting exploration drilling campaign on the Norwegian Continental Shelf (NCS). We expect to participate in 5 wells in the second half of 2007 followed by a further 6-8 wells in 2008. Our organisation has been working hard to prepare the company for this plan and are very much looking forward to the results."
Revus is making good progress in evaluation merger and acquisition opportunities both on the NCS and on the UKCS with a particularly strong focus on the UKCS where the market is far more liquid than the NCS.
"In July we announced our first farm-in deal in the UK with Sterling Resources (UK) Ltd. and EnCore (Forbes) Limited on what we believe is an attractive prospect. The prospect, which will rank high in our inventory of drilling opportunities, is expected to be drilled in 2008. Although the NCS is definitely our main focus area, we are determined to build a second business unit and expand our UK position to also include production or near term producing assets and more exploration. This will provide more diversity and the cash flow and tax position to support the exploration program," Vabo added.
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