23 July 2012
The appraisal well preparation activities at the discovery commences
Following a recent partnership meeting, the 2012 budget for the Spanish Point discovery was unanimously approved. The budget includes the provision for well design activities as part of the ramp up to a 2013 appraisal drilling programme. Currently, the plan is to spud the initial appraisal well in Q3 2013 subject to rig availability and governmental approvals. The partners also agreed to the transfer of Operatorship of FEL 2/04, FEL 4/08 and Licensing Option 11/2 from Providence to Chrysaor, subject to Irish government approval.
Under the terms of the 2008 farm-out agreement, Chrysaor has elected to exercise its option (ref. RNS 14 March 2011) to drill up to two appraisal wells on the Spanish Point discovery. In return for committing to such a significant work programme, Chrysaor's equity participation in FEL 2/04, and the adjacent FEL4/08, has increased from 30% to 60%, with Providence and SOSINA retaining 32% and 8%, respectively. As part of the agreement, Chrysaor provided a financial cap on Providence's and SOSINA's financial exposure to the appraisal drilling costs.
| Contacts: | ||
Dr. David J. Davies Managing Director, CEO SOSINA Exploration Ltd 1 Berry St Aberdeen AB25 1HF Tel: +44 01224 845472 | Mr. John Ødegaard, Chairman of the Board Tel: +45 35 31 10 03 Mobile: +45 27 26 00 03 |
| About Spanish Point The Spanish Point gas condensate discovery was made by Philips Petroleum in 1981 with the drilling of the 35/8-2 well. Oil and gas were discovered in Upper Jurassic Volgian sands with one zone flowing at c. 5 MMSCFD and c. 1000 BOPD (c. 1800 BOEPD). The discovery was not appraised due to lack of gas infrastructure and market in Ireland at the time. In 2004, Providence/SOSINA licensed the discovery and following in depth subsurface and pre-development studies, Chrysaor farmed in during 2008 by agreeing to fund a c. 300 sq km 3D seismic survey which was acquired in 2009. Evaluation of these data has confirmed a resource level of up to c. 510 MMBOE with c. 200 MMBOE recoverable. Peak production rates have been modelled at over 70,000 BOEPD and planning has commenced for an appraisal drilling programme. |
BOPD: BOEPD: MMBOE: MMSCFD: | Glossary of terms used Barrels of Oil per Day Barrels of Oil Equivalent per Day Millions of Barrels of Oil Millions of Cubic Feet of Gas per Day |
About SOSINA
SOSINA Exploration Ltd. is an independent oil and gas exploration company. The Company was founded in 2004, but with roots back as a sister company to the company Odegaard Ltd. acquired in 2006 by Schlumberger Inc.
SOSINA's active oil and gas portfolio includes offshore interests in Ireland and the UK. SOSINA's portfolio is balanced between appraisal and exploration assets. Comprehensive information on SOSINA and its oil and gas portfolio is available from SOSINA's website at www.sosina.co.uk.
