TransAtlantic Petroleum enters into shale agreement with LNG Energy in Bulgaria
TransAtlantic Petroleum Ltd. has entered into an agreement with LNG Energy Ltd. whereby LNG will invest US$ 7.5 million to immediately commence drilling the Peshtene R-11 well this week, which will be a 10,500 foot (approximately 3200 m) exploration well in the A-Lovech exploration license in Bulgaria.
"With its participation in a number of licenses in the shale play in Poland, LNG brings hands-on experience to the exploration of the Etropole formation for natural gas. The drilling of an Etropole test well will increase our technical understanding of the play and is the first step in our effort to unlock the long-term potential in the Etropole," said Gary Mize, the Company's President.
The A-Lovech exploration license, which is 100% owned and operated by Direct Bulgaria, covers an area of approximately 565,000 acres (2288 km2) in northwestern Bulgaria, all of which is prospective for the Etropole formation. This agreement with LNG covers the southern portion of the A-Lovech exploration license.
LNG will fund up to an additional US$ 12.5 million, of which US$ 7.5 million will be used to drill a second well or for other exploration activities on the Etropole Concession. In return, and subject to approval by the government of Bulgaria, LNG Energy Ltd. will form a Bulgarian subsidiary to acquire a 50% working interest in the Etropole Concession.
N. Malone Mitchell, 3rd, TransAtlantic's Chairman and Chief Executive Officer, stated, " We are excited to partner with LNG to accelerate our campaign to target and exploit the natural gas potential of the unconventional Etropole formation. Should the Etropole prove productive, this location lies less than 10 km from existing pipeline infrastructure, and production will benefit from regional natural gas prices that are currently around $10/Mcf."
With respect to the balance of the A-Lovech exploration license, Direct Bulgaria has already applied for a production concession over the northern 160,000 acres (648 km2) called the 'Koynare Area'; the Koynare Area contains a conventional gas discovery in the Jurassic-aged Orzirovo formation and is also prospective for the Etropole.
Read the article online at: https://www.oilfieldtechnology.com/exploration/23092011/transatlantic_petroleum_enters_into_shale_agreement_with_lng_energy_in_bulgaria/
You might also like
Developing a retrievable remote open barrier plug
Geir Melhus, Vice President Operations, and Johannes Nesse, Field Service Manager, TCO, Norway, examine the process of developing a new type of shallow set barrier plug, and its implications for upstream technology.