Elixir Petroleum (ASX: EXR) has reached an agreement to farm out a stake in its UK North Sea permit to Adriatic Oil.
Adriatic will be assigned a 25% participating interest in Seaward Production Licence P1921 by funding the cost of interpreting newly purchased 3D seismic data over the area up to an agreed maximum value and a cash consideration towards Elixir’s past costs.
If interpretation of the 3D data indicates that reprocessing is required, Adriatic will have an option to earn an additional 25% participating interest by carrying Elixir’s share of the costs on a partially promoted basis.
If the 3D data does not require reprocessing and a drill ready target exists, Adriatic will have an option to acquire an additional 25% participating interest by paying £100,000 and granting a 10% gross overriding royalty to Elixir.
P19212 contains the large Sunset stratigraphic oil prospect in the Middle Jurassic Beatrice Formation.
Sunset is predicted to have Beatrice Formation reservoir sands, which have been identified as an acoustic impedance anomaly on several 2D seismic lines.
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