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Horizon West oil discovery awarded to Grove in the Dutch North Sea
Horizon West oil discovery awarded to Grove in the Dutch North Sea.
About this update from Surge Copper Corp.
[{"type":"text","content":"\n\n\n\n\n>\n\nVANCOUVER, Oct. 30 /CNW/ - Grove Energy Limited (\"Company\")(TSX-V &\nAIM: GRV), the oil and gas exploration company with assets in Europe and the\nMediterranean Margin, has been formally awarded the Horizon West (P8a)\nProduction Licence (the \"Licence\") in the Dutch North Sea. The Licence\ncontains the Horizon West Oil Field (\"Horizon West\") discovered in 1982.\nThe Licence provides for development from Chevron's P9 Horizon Platform\nand for participation of the Dutch State via EBN which will result in the\nfollowing participation: Grove 48%; EBN 32%; Chevron 16% and Dutch State\nMining 4%. All parties will fund the development in accordance with their\nworking interest. The 15 year Licence covers an area of 26.17 sq. km.\nHorizon West was discovered by Mobil in 1982. Three vertical wells were\ndrilled on structure and test rates were up to 900 barrels of oil per day of\n38.4 API quality crude. It is believed that the field contains approximately\n50 - 70 million barrels of Stock Tank Oil Initially in Place (\"STOIIP\") and\nhistorical data suggest recoverable reserves of between 8 - 12% of STOIIP. The\nHorizon West field lies within the Lower Cretaceous Vlieland Sandstone\nreservoir at a depth of around 1,800 meters sub sea in approximately 33 meters\nof water.\nAn independent reserve report is being prepared pursuant to Canadian\nNational Instrument 51-101 requirements for Reserve Reporting. This report\nwill be lodged in December 2006.\nDevelopment will be managed by Chevron from its P9 Horizon Platform 6km\nto the east and will involve drilling a horizontal extended reach well,\nthereby reducing capital expenditures and bringing forward development and\nfirst production. The horizontal well will expose a much larger section of the\nreservoir which should result in substantially higher flow rates than achieved\non the vertical well tests.\nAgreement with Chevron, of a joint development and operating plan,\nincluding processing and transport tariffs, is well advanced.\nGrove intends to arrange a loan facility to fund development and\ndiscussions have commenced with a number of financial institutions.\nThe Horizon West P8a Production Licence together with Exploration Blocks\nF14, F18 and L1b provides Grove with a material acreage position in the Dutch\nNorth Sea. After the recent sale of the majority of...