InfraStrata signs exploration agreement

Ireland: InfraStrata signs exploration agreement

London-listed InfraStrata has signed an exploration agreement in regards to an onshore licence PL1/10 in northern Ireland and the adjacent P2123 licence.

The independent signed an agreement to work with Larne Oil & Gas, alongside joint venture partners Brigantes Energy and Terrain Energy.

Under the terms of the agreement, Larne has the exclusive option to farm into both licences.

If the company goes ahead with that option, Larne will be credited with the option price and will then fund a “disproportionate” share of the costs of the upcoming Woodburn Forest-1 exploration well.

This will allow Larne to take a 50% interest in the licence.

If the option is exercised before September, InfraStrata as the operator will hold a 20.83% interest, Larne will hold 50%, Brigantes will hold 16.67% and Terrain would hold 12.5%.

Woodburn Forest-1 is the first exploration well on the licence since 1971, targeting three prospective sandstone reservoirs.

The well should be spudded by the end of the year, according to the company.

The reservoirs are expected to hold about 40 million barrels of oil.

InfraStrata will be fully carried on the total cost of the well thanks to existing farm-in agreements with the other two players.

The agreement is still subject to approval.

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