Under the deal, made in May, Albion planned to farm-in to several North Sea UKCS licences held by Elixir and joint venture partner Granby Oil and Gas, in order to secure up to 12.5% working interest.
But Elixir today said Albion had failed to complete the transaction in the required time and was unable to prove its financial capacity.
It said Albion’s withdrawal is unlikely to impact on its £5 million ($A12 million) forward drilling plans.
Gas Plus Italiana SpA will instead take up Albion’s interest in the upcoming drilling of Block 15/13b, containing the Guinea prospect.
“Consequently, there is no commercial impact on Elixir or its co-venturer Granby Oil and Gas plc for the Guinea well, which will be operated by Nexen and is expected to begin drilling operations in November,” Elixir said.
“The company continues to make good progress towards farming-out other licences for drilling during 2007.”
Located about 20km northeast of the Piper oil field, the prospect lies in about 150m of water and is a robust, four-way dip-closed Palaeocene structure that lies on trend with fields such as Balmoral and Dumbarton.
Block 15/13b was awarded as a promote licence to Granby in the 22nd Licensing Round in December 2004. Under an alliance agreement, Elixir was entitled to earn a 35% interest.
