More drilling in prospect on Danish licenses

PA Resources (PAR) has won two-year extensions on two licenses in the Danish North Sea from the Danish Energy Agency.

Offshore staff

STOCKHOLM, Sweden – PA Resources (PAR) has won two-year extensions on two licenses in the Danish North Sea from the Danish Energy Agency.

These are license 12/06, which the company operates with a 64% interest, and license 9/06 (Gita), operated by Maersk, wherein the company has a 26.8% stake.

The 12/06 permit contains last year’sBroder Tuck gas/condensate and Lille John oil discoveries. PAR plans to drill an appraisal well on Lille John, and is negotiating a drilling management contract.

In 2009 the Gita 1X-well in license 9/06 encountered indications of hydrocarbons in the Middle Jurassic high-pressure/high-temperature (HP/HT) secondary target, but with low permeability. Subsequent studies have not lowered the producibility risk.

There is no well commitment but a decision regarding drilling must be made by October 2013. In the meantime, further subsurface studies will be performed to evaluate prospectivity at Upper Jurassic and shallower Cretaceous and Tertiary levels.

PAR had also been a partner in the Maersk-operated 9/95 license, which again has been extended to allow drilling of a deep HP/HT well targeting a complex Upper Jurassic gas exploration prospect.

However, PAR regards this well as high risk, and as a result has elected to withdraw from the license.

6/25/2012

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