CMI backs into Hurricane well

Offshore staff

CALGARY, Canada -- Ithaca Energy has signed an “earn-in” agreement with Challenger Minerals North Sea CMI for the Hurricane discovery in the UK central North Sea.

Hurricane is in block 29/10b, within the Ithaca-operated Greater Stella Development Area. It was discovered in 1995 by well 29/10-4Z, which encountered 41° API oil in a 62-ft (18.9-m) section of reservoir sands in the structure’s western lobe.

The partners plan to drill an appraisal well to prove hydrocarbons in the eastern lobe, which features high porosity (up to 30%) channelized Paleocene Rogaland sandstones.

If successful, a side track will be drilled up-structure in anticipation of future development via the proposed Stella hub.

CMI will pay 40% of the costs of the initial well, in exchange for a 31% equity interest in block 29/10b.

If the appraisal program is successful, the company will also pay 40% of gross costs of a drillstem test of any side track.

Ithaca is negotiating with Transocean subsidiary Applied Drilling Technology International for a rig and well management services. It hopes to start drilling during 4Q 2011.

04/26/2011