Granby farms out North Sea share
UK minnow Granby Oil & Gas announced today it had signed an agreement to farm out a 16.66% interest in UK North Sea blocks 14/9a and 14/14b to Fox Petroleum.
The bocks are currently in the process of being merged by the UK’s Department of Trade and Industry
Under the arrangements, Atlantic Petroleum will also farm out a similar interest, which means that Fox will earn a total 33.33% share of the merged licence.
A high resolution 2D seismic survey is currently being acquired over the licence area in order to confirm the prospect and to select a well location.
Granby will remain operator with a retained 33.34% interest, while Atlantic and Fox will each hold a 33.33% stake in the licence.
Granby and Atlantic have also granted Fox an option to acquire an additional 26.67% of the licence after completion of high resolution 2D seismic processing by paying a further 46.67% of the costs of an exploration well, thereby carrying 10% of the well costs for each of Granby and Atlantic.
In the event that the option is exercised by Fox, Granby and Atlantic would each retain a 20% interest in the licence.