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Grove Energy Limited - Farm out of 50% interest in San Marco Concession
Grove Energy Limited - Farm out of 50% interest in San Marco Concession.
About this update from Surge Copper Corp.
[{"type":"text","content":"\n\n\n\n\n- 50% of San Marco Concession farmed out to influential Italian gas \n marketer, Blugas \n\n- Blugas to fund 72.5% of costs of drilling, testing and well \n completions \n\n- Grove to enter into a long term gas sales agreement with Blugas\n\nVANCOUVER, Sept. 29 /CNW/ - Grove Energy Limited (\"Company\") \n(TSX-V & AIM: GRV) the oil and gas exploration company with its primary assets\nin Europe and the Mediterranean Margin, advises that it has agreed to farm-out\na 50% working interest in the San Marco Concession to Blugas S.p.A (\"Blugas\").\nUnder the terms of the San Marco Joint Venture, Blugas will fund 72.5% of\nthe costs of drilling, testing and well completions undertaken on the\nSan Marco Concession. The San Marco Joint Venture, which excludes the\nAbbadesse discovery, has been established to explore a number of leads during\n2006.\nPursuant to the terms of the San Marco Joint Venture, which exclude that\nportion covered by the Abbadesse Joint Venture, Grove and Blugas (\"Parties\")\nhave agreed to the following:\n\n- Stage 1 - The Parties funding obligations will be 50% each in respect\n of the costs of seismic acquisition, processing and interpretation.\n- Stage 2 - Upon a decision to undertake exploration drilling in\n relation to any prospect, Blugas' funding obligations will be 72.5%\n and Grove's will be 27.5% in respect of the costs of drilling, testing\n and completion of each drilling program.\n- Stage 3 - Upon completion of each agreed drilling program, the parties\n funding obligations will revert to 50% each.\n- Grove will enter into a long term gas sales agreement with Blugas,\n with a discount of 1% from the prevailing market price for Italian\n gas.\n\nThe San Marco Concession, containing Grove's Abbadesse discovery, covers\nan area of 29,254 hectares and is surrounded by in excess of 1 Tcf of gas in\nadjoining concessions held by ENI S.p.A. Abbadesse was flow tested in\nJanuary 2005 at aggregate flow rates of 15 million scf/d from three horizons.\nThe Abbadesse discovery, located in the western portion of the San Marco\nConcession, validated an exploration model that is now being pursued via the\nSan Marco Joint Venture.\nGrove is awaiting approval of its application to develop Abbadesse from\nthe Italian Ministry of Productive Activities. This process has taken longer\nthan expected because ...