Acquisition
27 Outubro 2003 - 5:00AM
UK Regulatory
RNS Number:3110R
Hereward Ventures PLC
27 October 2003
27 October 2003
Hereward Ventures plc
ACQUISITION OF ONSHORE UK OIL EXPLORATION INTERESTS
Hereward Ventures plc ("Hereward" or "the Company") is pleased to announce that
it has entered in to an agreement to acquire 5 per cent. interests in the UK
onshore oil exploration licences PEDL 098, 099 and 113, located in southern
England from Black Rock Resources (UK) Limited ("Black Rock"). Northern
Petroleum (GB) Limited is the operator of the licences.
The transaction, which is subject to receipt of the necessary approvals from the
Department of Trade and Industry is in the form of a farm-in agreement with
Black Rock. The interests in the three licences will be earned by the
contribution of a 10 per cent. share of future costs which will include an
appraisal well to test a logged oil accumulation which is expected to be drilled
on the Sandhills prospect on PEDL 113 on the Isle of Wight during 2004. The
share of all costs will be funded from the Company's existing cash reserves.
Managing Director Mr David Bramhill, said "This is our first step in
diversifying into the oil and gas sector and follows a review of opportunities
resulting from the resurgence in UK onshore oil exploration. We regard these
licences as offering upside with low risk. Hereward is continuing to seek
further opportunities in this sector and is currently reviewing projects which
have the potential to add significant shareholder value and cash flow."
The licences cover most of the Isle of Wight and the area inland from
Portsmouth. Oil shows have been recorded in several previous wells of varying
vintages, including Arreton -2, Portsdown -1 and -2 and Potwell -1. Most
notable, however is the British Gas Sandhills-1 well, drilled in 1982, southwest
of Cowes, on the Isle of Wight. The target of this well was the Sherwood
sandstone of Triassic age, prolifically productive at Wytch Farm to the west, in
Dorset. Oil was present in the Greater Oolite reservoir formation (Jurassic),
but was untested as at that time the Oolite was not considered to be a viable
reservoir in this area.
Subsequent geological reassessment utilising modern technical capabilities,
armed with the experience from numerous oil discoveries in the Oolite, including
the recently announced discovery at Avington -2, has determined that the
Sandhills structure contains oil in place independently estimated at 49 million
barrels probable and 76 million barrels probable plus possible. This is a
potential of 15.2 million barrels of recoverable oil utilising a 20 per cent.
recovery factor.
The board of Hereward remain active in reviewing and evaluating several
available, attractive and realistic opportunities within the hydrocarbon
industry and are confident that rapid progress can be made in bringing to
fruition significant acquisitions and joint ventures in this revitalised sector.
Enquiries:
David Bramhill Laurence Read / Leesa Peters
Hereward Ventures plc Conduit PR
+44 (0) 117 957 3666 +44 (0)20 7936 9095
+44 (0) 7801 540 358 +44 (0)7979 955 923
office@hereward.com laurence@conduitpr.com
Bill Staple / Tim Feather
Brown, Shipley & Co. Limited
+44 (0) 20 7282 3270
tim.feather@brownshipley.co.uk
Please note: more background information on
Hereward Ventures plc can be obtained by visiting
www.hereward.com
This information is provided by RNS
The company news service from the London Stock Exchange
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