Elixir farms-out North Sea block

AUSTRALIAN junior Elixir Petroleum and its joint venture partner Sosina Exploration say they have farmed-out equity in their North Sea Block 211/18b to European company RWE Dea.

Under the farm-in deal, RWE will secure a 30% interest in the block by contributing on a promoted basis to the cost of drilling an exploration well on the Leopard Prospect.

Following the deal, Elixir will have a 56% interest in the block, while Sosina will hold 14%.

Elixir said the JV will be actively seeking to attract another farminee to cover both company’s costs for the planned Leopard well.

The farm-in offer is conditional on the execution of a formal agreement by April 30 and government approval.

Leopard is a large Upper Jurassic stratigraphic prospect in Block 211/18b which, based on Elixir’s mapping, could contain prospective hydrocarbon resources up to several hundred million barrels of oil.

The prospect has been mapped from modern 3D seismic. It has also been de-risked by a long offset seismic line linking Leopard with a producing analogue, the Borg oil field, across the median line in Norway.

RWE is a leading utility sector business with activities primarily involving the production and sale of electricity, natural gas and oil in German, central and eastern European and British markets.