Beach Petroleum Takes 25% Stake in Ebro Basin
Beach Petroleum has added to its expanding exploration program for 2007 and 2008. The Company has successfully completed negotiations for a farmin agreement through which Beach will acquire a 25% interest in four onshore tenements in the Ebro Basin, Spain by participating in 2D seismic acquisition, which commenced in October 2007.
The Ebro Basin lies in northeastern Spain, south of the Pyrenees Mountains, which separate it from the prolific Aquitaine Basin in southwestern France.
The terms of the farmin agreement negotiated with Serica Energy Plc provide that Beach, through a wholly owned Spanish subsidiary, will acquire a 25% interest in four tenements in the thrust belt associated with the Pyrennean foothills. The presence of potentially very large sub-thrust structures and hydrocarbon seeps indicate that this area has the potential to host very large fields, with gas the most likely hydrocarbon type. Beach considers that the area has the potential to contain recoverable reserves net to Beach of more than 250 BCF. This, together with the presence of existing pipeline infrastructure and high prevailing gas prices (above US $8/GJ), give a strong commercial incentive to conduct gas exploration in this area.
A 330km 2D seismic program is being acquired in the tenements at the present time, following a 15km test line acquired in July 2007. Exploration drilling, dependent upon the seismic results, is expected in 2008/9, subject to rig availability.
Following incorporation of the Spanish subsidiary, and completion of the farmin, participants in the Ebro Basin tenements (Abiego, Peraltilla, Barbastro and Binefar) will be:
Company Equity Beach Petroleum Spain, S.L. 25% Serica Energía Ibérica S.L. 75%
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