Granby lines up two UK wells

Offshore staff

LONDON --Granby Oil and Gas has increased its interest in the Monkwell gas field in the UK southern North Sea to 20%, following a farm-in agreement with operator Dana Petroleum.

Monkwell was discovered in 1989 by well 42/29-6, which produced gas at a rate of 26.8 MMcf/d from Lower Leman sandstone. The partners, also including Gas Plus E&P UK and Dyas UK, plan to drill a new well next year to further appraise the field.

Granby also has farmed out a 25% interest in North Sea blocks 9/22 and 9/23c to Valiant Petroleum. The license area has numerous prospects, some of which were covered this year by newly acquired high-resolution 2D seismic.

Under the farm-out accord, Valiant will fund 50% of the costs of an exploratory well on Granby's behalf, while Granby will retain a 25% stake in the license. The well should be drilled in 2008.

12/11/2007