LONDON, UK --Encore Oil has arranged a farm-out with two Indian oil companies relating to two UK southern North Sea blocks. Assuming approval from the UK government, Bharat Petroleum and Tata Petrodyne each will acquire 25% of blocks 48/1b and 48/2c from EnCore and NWE Southern Cross (UK).
Under the arrangement, the two new block partners each will pay 40% of the costs of drilling an appraisal/development well on a 1984 Amoco discovery (48/2-1), up to a gross total of $23 million. Drilling is scheduled for 2008.
"We believe the use of modern drilling techniques could unlock the commercial potential of this license, as has been recently demonstrated by drilling in nearby blocks," says Alan Booth, EnCore's CEO.