Oil & Gas Corporate News
Northern Petroleum (LON:NOP) (NPT, 100p, ? (0.74%)) agreed to farm-out to Orca Exploration Group Inc. an interest in the Longastrino Permit in the eastern part of the Po Valley Basin, onshore Italy. Under the terms of the farm-out agreement, Orca will pay 100% of the costs of the first well up to Euro 4.3m and 70% thereafter to complete the drilling phase. If the well is tested and completed, then Orca will earn an additional 5% by paying 100% of the testing costs up to Euro 1.3m and 75% thereafter. Orca will also pay back costs of Euro 0.6m. Northern's equity will reduce to 30% during drilling and then by a further 5% if the well is flow tested in which case Northern will retain 25%. The principal target within the Longastrino Permit is the La Tosca prospect. The prospect is just 2km to the northeast of the Alfonsine gas field and the 3-D seismic that covers the prospect shows a well defined seismic amplitude anomaly within the mapped closure. The La Tosca-1 well will be drilled to an estimated total depth of approximately 2,500m. The well is scheduled to be drilled in 2011. In Italy Northern has pursued a focussed approach to licencing and now holds 14 permits and 22 applications and established a position of strength. Using modern 3D seismic, Northern has interpreted the La Tosca prospect, with 45BCF of gross mean prospective resource. Work is being progressed to secure a well site from which to drill the well for this farm-out. The drilling of the La Tosca prospect will target an upside of 85BCF gross prospective resource of gas. Northern will be the Operator during the drilling and testing phase and Orca will assume Operatorship of the permit thereafter.
Caza Oil & Gas (CAZA, 49.5p, ? (3.13%)) has executed a drilling contract with Nabors Drilling USA, LP to utilize Nabors Rig 4 to drill the Marian Baker #1 well on Arran Prospect to a total depth of approximately 16,000 feet beginning on or around December 18, 2010. Arran is regarded by the Company to be a multi-segment prospect, with prospective reservoirs supported by AVO data within a proven play fairway. The Marian Baker #1 well is expected to encounter multiple, potential, hydrocarbon bearing reservoir sections. Caza will update the market accordingly when the…
