Adriatic Oil set to control Moray Firth license
Elixir Petroleum (ASX:EXR) has amended a UK North Sea farm-out agreement with Adriatic Oil.
PERTH, Australia – Elixir Petroleum (ASX:EXR) has amended a UK North Sea farm-out agreement with Adriatic Oil.
This concerns Elixir’s 75% owned and operated production license P1921, covering contiguous blocks 12/18 and 12/19c in the Inner Moray Firth area.
Both blocks are 150 km (93 mi) northeast of Inverness, in a water depth of 75 m (246 ft). Elixir secured the concession early last year under the26th UK seaward licensing round.
Adriatic will be assigned a further 55% interest, giving it an 80% operating position. In exchange, Adriatic will fully fund reprocessing and interpretation of acquired 3D seismic data.
Additionally, the company will bear all costs related to any farm-out required to fulfill the drill-or-drop terms prior to February 2014. Elixir will retain a 20% stake.
The transaction is subject to approval by UK authorities.