Enegi is to drill at least one new well off Newfoundland after agreeing a farm-in agreement to its Canadian licence.
Shale gas developers Black Spruce Exploration is to spud a well at the PL2002-01(a) site, which includes the Garden Hill Field find, after reviewing Enegi’s technical findings.
The companies agreed a farm-in deal earlier this year which will see Black Spruce landing 60% interest in the Newfoundland assets, in exchange for paying for up to 12 wells on the site.
Now a drill rig is being fitted out in Houston to be sent to Newfoundland to start drilling once regulatory approval is confirmed.
“We are delighted that BSE agree with the need to drill at least one new well on PL2002-01(A) in 2013,” said Enegi chief executive Alan Minty.
“BSE undertook a rigorous due diligence review of the company’s technical data, using renowned experts in geology, geophysics, and reservoir engineering, and we are enthused that following this, BSE continues to share our long held view of the exceptional potential and prospectivity of our Newfoundland assets.
“By committing to drill up to 12 wells for a 60% interest in Enegi’s Newfoundland assets under the Farm-In, and noting that the cost of each well will be significant, BSE has already demonstrated the inherent value of Enegi’s Newfoundland assets.”
