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P2304Block 41/24 Southern North Sea

 

Licence P2304
Europa interest Relinquished - see below
Partners  
Area Km2  
Basin Southern North Sea
Play Carboniferous Namurian & Dinantian
Term  

 

This is a promote licence awarded in July 2015 over Block 41/24 in the Southern North Sea to a joint venture comprising Europa and Arenite Petroleum Limited. The licence was awarded as part of the 28th Seaward Licensing Round. Block 41/24 adjoins the Yorkshire coast and contains the Maxwell gasfield which was discovered in Permian Zechstein carbonates by Total with the drilling of offshore well 41/24a-1 in 1969. Two follow-up appraisal wells (41/24a-2 by Total 1981 and 41/24-3 by Conoco 1992) targeted this fractured carbonate reservoir and flowed gas and condensate.

In December 2017 we announce the sale of our 50% interest in Promote Licence P2304 to Egdon Resources plc. P2304 is located to the immediate south of Egdon’s 100% owned licence P1929 (UKCS Blocks 41/18 and 41/19) offshore North Yorkshire.

The consideration comprises the immediate reimbursement of the 2017 licence rental, OGA Levy and vendors’ legal costs (c. £15,000 in total) and future staged payments that have the potential to total £1.45million gross contingent consideration on the successful completion of various potential exploration activities and/or on reaching certain production milestones, as summarised below:

  •  Â£50,000 cash payment on completion of the acquisition of a 3D survey over any part of the Licence

  • £100,000 cash payment on completion of the drilling of the first well located wholly or partly within the area covered by the Licence

  • £100,000 cash payment on first production, other than testing, from any well located wholly or partly within the area covered by the Licence

  • £200,000 cash payment on reaching a total production of 5 billion standard cubic feet of gas (‘bcf’) (or oil equivalent) from any wells located wholly or partly within the area covered by the Licence

  • £1,000,000 cash payment on reaching a total production of 20 bcf (or oil equivalent) from any wells located wholly or partly within the area covered by the Licence

The transfer is subject to OGA approval