Lundin Exploration BV and its partners have won frontier exploration license 1/05 over the Donegal basin. The license covers block 13/7 and part-blocks 13/11 (northeast) and 13/12 (north) off the northwestern coast of Ireland.
Lundin Petroleum, Ramco Energy plc, and Sunningdale Donegal Basin Ltd. had previously held, through respective affiliates, a licensing option (00/02) over this area and have completed an extensive technical evaluation program, which has identified a number of drillable targets. The largest of these, Inishbeg, is a four-way dip-closed anticlinal structure and lies in 100 m of water.
Through a farm-in agreement signed with Ramco and Sunningdale, Island Oil and Gas and Petroceltic International plc will acquire an interest in the license. As a result of this farm-in the equity interests in the Frontier Exploration License will be: Lundin Exploration BV 35% and operator, Island Assets Porcupine Ltd. 26%, Ramco Donegal Ltd. 19.25%, Lerida Trading Ltd. 16.25%, and Sunningdale Donegal Basin Ltd. 3.5%.
As previously announced by Lundin Petroleum, the company has granted an option to acquire a 5% ground-floor interest in this license to Island Oil and Gas plc as part of the consideration for the sale of the interests in the Seven Heads Gas Project and certain other oil and gas interests offshore Ireland. Once sanctioned, this will result in adjustment of the above interests to Lundin Exploration BV operator and 30% and Island Assets Porcupine Ltd. 31%.
Under the terms of the Frontier Exploration License, which runs for 15 years, Lundin plans to drill an exploration well in 2005, targeting the Triassic Sherwood sandstone reservoir in the Inishbeg prospect.
01/31/05
