Petrel Resources PLC Offshore Ireland Licences Accepted (8640A)
10 June 2016 - 10:33AM
UK Regulatory
TIDMPET
RNS Number : 8640A
Petrel Resources PLC
10 June 2016
10(th) June 2016
Petrel Resources plc
("Petrel" or "the Company")
Offshore Ireland Licences Accepted
Petrel Resources plc (AIM: PET), the AIM listed oil and gas
exploration company, has formally accepted two new Licensing
Options (the 'LOs') awarded in the Porcupine Basin, offshore
Ireland, as part of phase 2 of the 2015 Atlantic Ireland licensing
round. Petrel is the 100% Operator.
The licences have two year terms with agreed work programmes
following which Petrel has the option to convert to Frontier
Exploration Licences.
Licensing Option 16/24, in the North-Eastern Porcupine Basin, is
a considerable grant of 664 sq. km encompassing the entirety of
Blocks 26/26, and 35/01, as well as available parts of 26/27 and
35/02.
LO 16/24 is located in a strategic sector of the Porcupine Basin
close to the known hydrocarbon discoveries of Burren (Lower
Cretaceous), Spanish Point (Jurassic) and Connemara (Jurassic).
There are few emerging exploration areas with so many potential
plays as the Porcupine - an under-explored basin with up to 10km of
sediment. The recent major discoveries in the Flemish Pass basin,
offshore eastern Canada, have re-focussed industry attention on the
Upper Jurassic, particularly in South Porcupine, while along the
basin margins the exciting potential in the Lower Cretaceous,
prolific in West Africa, also remains undrilled. LO 16/24 has
potential for both Jurassic and Lower Cretaceous prospects.
Petrel's technical experts' interpretation of legacy traditional
2D seismic data indicated Lower Cretaceous 'pinch-out plays' in the
southern section of the acreage, with the potential for up to 310
million barrels of oil equivalent gross mean un-risked indicative
resources. Separate Apto-Albian plays in the northern section of
the acreage awarded also have considerable potential, but need
reprocessing and reinterpretation of the expanded seismic data set
to give estimates with greater confidence.
Licensing Option 16/25 is in the Eastern Porcupine Basin, closer
to shore, and encompasses 260 sq. km of the entirety of Block
45/27.
Block 45/27 lies within an embayment on the eastern margin of
the Porcupine Basin. Sediment was fed into this area in Lower
Cretaceous time from the Celtic Platform to the east, and
particularly from the adjacent Túr Igneous Centre. The principal
play, so far identified, is for up-dip pinch-out of Lower
Cretaceous units against the basin margin. Interpretation of legacy
2D seismic data indicates potential for closure at these levels
within the block. It is premature to estimate recoverable volumes
but the strength of competing bids and companies operating on
similar acreage nearby highlights the prospectivity of this part of
the Porcupine. This area is covered by the 3D seismic programme
acquired by Kosmos Energy in 2013.
Petrel has bid and agreed a work programme on each Licensing
Option. This includes the purchase of additional seismic data (not
already in Petrel's database), after which we will reprocess and
re-interpret the enlarged dataset. Following the completion of this
work programme, Petrel will have the option to apply to convert
each LO into a full Frontier Exploration Licence (FEL).
David Horgan, Petrel Director, commented, "The resounding
success of the 2015 Bid Round has transformed the Irish Atlantic,
and especially the Porcupine Basin. When we first applied for
acreage in 2011 it was a lonely path. Financial markets were
sceptical and the industry unconvinced. We have persisted with our
work on and evangelising of the Porcupine Basin."
"There were three discoveries in the Porcupine Basin in the
period 1978-1981, of which the Spanish Point discovery is due to be
re-drilled by Cairn. Recent technological advances, better
understanding of geology and higher average oil and gas prices have
opened up the Irish Atlantic. Previous oil price falls after 1986,
and again after 1998, led to operator departures and a drying up of
interest. But the oil price fall of 54% since mid-2014 has not
diminished explorer interest. Instead, more and bigger companies
are bidding larger work programmes. In the 2015 Bid Round, 43
applications were made by 17 companies but only 28 offers made.
Less than half of the Porcupine Basin acreage applied for was
offered".
"We plan to apply new techniques and lessons learnt elsewhere to
the new ground, approaching innovative partners open to different
ideas, and we hope to expand our Porcupine Basin presence in the
future."
This release has been reviewed by Professor Dave Naylor, BSC
Leeds (Hons), PhD TCD, former Assistant Director of the Irish
Geological Survey, and Manager Petroleum interests of Northgate
Exploration Ltd and Ennex International plc. Dr Naylor is a
petroleum geologist with over 50 years' experience in petroleum
exploration and one of the leading authorities on the Irish
offshore. He has co-authored the definitive text Petroleum Geology
of Ireland.
END
Enquiries:
For further information please visit
http://www.petrelresources.com/ or contact:
Petrel Resources Plc
David Horgan, Director +353 (0) 1 833 2833
Nominated Adviser and Broker
Northland Capital Partners Limited
Edward Hutton / Gerry Beaney +44 (0)203 861 6625
John Howes (Broking)
Public Relations
Blytheweigh +44 (0)20 7138 3204
Tim Blythe +44 (0) 7816 924 626
Camilla Horsfall +44 (0) 7871 841 793
Megan Ray +44 (0) 7515 857 619
Anna Worboys
Rachael Brooks
PSG Plus
Colm Heatley +353 (0) 1 661 4055
Alan Tyrrell +353 (0) 1 661 4055
www.petrelresources.com
This information is provided by RNS
The company news service from the London Stock Exchange
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June 10, 2016 05:33 ET (09:33 GMT)