Elixir Petroleum (ASX: EXR) has secured new acreage in the UK North Sea which hosts a large identified oil prospect.
Blocks 12/18 and 12/19a, which are in the Inner Moray Firth area of the North Sea, were applied for in the 26th UK Seaward Licensing Round and have been offered to Elixir under promote licences as 100% interest holder and operator.
A single large stratigraphic prospect has been identified in the Middle Jurassic Beatrice Formation on the northerly edge of the Smith Bank High.
The prospect is predicted to have Beatrice Formation sands as the reservoir, which has been identified as an acoustic impedance anomaly on several 2D seismic lines.
No wells to date have targeted the Smith Bank High in the blocks.
The two blocks are contiguous and located 150 kilometres northeast of Inverness, in a water depth of about 75 metres.
The acreage lies to the northeast of the Beatrice oil field in Block 11/30a and to the west of the Captain oil field in Block 13/22a.
Work obligations covering the new acreage include the acquisition of 3D seismic data and require a drill-or-drop decision to be made by early 2014.
The two new blocks add to Elixir’s portfolio of prospects in the North Sea, which include the Tiger and Dumas Prospects.
The Tiger Prospect is a Magnus sands play type located next to the 1.5 billion barrel Magnus field operated by BP. Elixir has to make a drill-or-drop decision on the Tiger licence by February next year.
The Dumas Prospect licence was finalised in February 2011 on a two year drill-or-drop basis.
Four prior wells have been drilled on the block, which is believed to host possible Cretaceous aged prospects.