Oil and gas investor Reabold Resource PLC’s (LON:RBD) associate Corallian has agreed on a farm-out of the Curlew-A discovery in the North Sea.
ASX-listed Talon Petroleum will take a 10% interest in the licence that contains Curlew-A for 15% of the cost of an appraisal well estimated currently at £9.7mln.
Corallian expects to drill the appraisal in the second half of 2019 to test the original 1977 Shell discovery, which encountered 10.5m of net oil sands.
Drilling will go down to a depth of approximately 2,700 metres in a water depth of approximately 90 metres.
The intention is to target 44.7 million barrels of potential 2C resources with a deeper secondary objective in the deeper Forties Sandstone.
The Forties Sandstone was not previously encountered in the original discovery well but is expected to be developed in the southwestern flank of the structure where the appraisal well will be drilled, said Reabold’s statement.
Sachin Oza, co-chief executive, said he was delighted with the farm-out.
"Curlew-A is a perfect fit in our growing portfolio of low-risk, high-impact opportunities."
Investing at a company level [ie Corallian] gives Reabold exposure to a pipeline of new projects, he added.
Shares rose 3% to 0.78p.