Zeus Wins Operatorship to Explore, Develop New North Sea Block

Rheochem has announced that Zeus Petroleum (50% owned by Rheochem) has been awarded the rights to explore and develop block 14/26b in the UK 25th Seaward Licensing Round by the UK Government Department of Energy and Climate Change. Zeus will be the operator of the block with a 90% interest. Partner Aimwell Energy has a 10% interest.

The block is located immediately to the north-east of BG's Atlantic Field and contains the discovery well 14/26b-5 drilled in 1997. This well encountered a 97ft gas column and a 32ft oil column and tested gas at a flowrate of 34 mmscfd from the Burns sandstone member. Reserve estimates by DBERR for the discovery are 50-84 bcf of recoverable gas. Zeus believes the potential to be significantly higher. The Licence obligation is to drill a well in order to appraise the gas discovery.

Haydn Gardner commented, "We are extremely pleased to have added this exciting block to the Zeus Petroleum UK portfolio. 14/26b contains a discovery which has the potential to be developed quickly utilising existing infrastructure. This was the only block that Zeus applied for in the 25th Seaward Licensing round."