Agora enters two licences in UKCS Northern North Sea

The Stavanger-based oil company Agora Oil & Gas AS (“Agora”) announces that its wholly owned subsidiary Agora Oil & Gas (UK) Limited has reached agreement to farm in to two licences in the UKCS Northern North Sea as follows:

Production Licence P1680 (blocks 210/29c & 210/30b)

A 20% interest in P1680 has been acquired from Valiant Exploration Limited. The intention is for an exploration well to be drilled in the second half of 2011 on the Cladhan South Prospect, which sits directly to the south and east of the existing Cladhan Discovery. Under the farm in agreement Agora will pay a disproportionate share of the initial exploration well costs, subject to an agreed cap on promoted costs.

As part of a separate transaction conducted by Valiant, Sterling Resources (UK) Limited will become operator of Cladhan South. Sterling operates the Cladhan Discovery, which is currently under appraisal, whilst Wintershall (UK North Sea) Limited, a partner in the Cladhan Discovery, has also conducted a farm in transaction with Valiant to participate in the Cladhan South well.

Production Licence P1633 (blocks 211/11b & 211/16b)

Agora has secured a 35% interest in P1633 as a result of two transactions. A swap agreement with MPX North Sea Limited saw Agora acquire a 15% interest in P1633 in return for MPX gaining a 25% interest in East Irish Sea licence P1482. Following this transaction, Agora retains a 10% interest in P1482. Subsequently, Agora has acquired an additional 20% interest in P1633 from Sorgenia E&P (UK) Limited in exchange for a promote, capped at an agreed cost, for the first exploration well on the licence.

P1633 contains a number of drill ready prospects at Upper and Middle Jurassic levels including Timon, Lucius and Apemantus. An exploration well will be drilled to one of these targets in 2011 or 2012.

The Transactions remain subject to a number of conditions precedent including approval by the Department of Energy and Climate Change.

Agora CEO, Svein Ilebekk commented: “The addition of these licences strengthens our UKCS portfolio and allows us to participate in two exciting near-term drilling projects. We are particularly pleased to be exploring on the margins of the significant Cladhan Discovery. This compliments our follow up exploration programme in the Catcher area, where we expect results from the Burgman exploration well in the coming weeks”.

Read the Norwegian version of the press release (PDF).