Grove builds portfolio in Dutch Sector of North Sea via
- P8 Production License
- Blocks F14, F18 and L1b Exploration Applications
VANCOUVER, April 12 /CNW/ - Grove Energy Limited ("Grove") (TSX-V &
AIM: GRV) the oil and gas exploration company with its primary assets in
Europe and the Mediterranean Margin, has expanded its European portfolio via
the application for the P8 Production License, which contains a proven
undeveloped discovery and submissions for Exploration Licenses over Blocks
F14, F18 and L1b, also containing unappraised oil discoveries.
A Production License over the P8 Block in the Dutch North Sea ("P8
Block") has been applied for and Grove is in the final stages of the block
award. The P8 Block contains a proven undeveloped oil accumulation discovered
by Mobil in 1982, with three wells drilled on structure. The wells flowed
between 500 to 800 barrels of oil per day during testing from vertical wells.
An independent reserve report is being prepared pursuant to National
Instrument 51-101 requirements for Reserve Reporting in Canada and will be
issued upon the final granting of the Production License.
A number of development scenarios are being evaluated, however the
preferred option is currently a horizontal long reach extended well from the
Horizon platform which is approximately 6 km from the P8 discovery. A
horizontal well should result in substantially higher flow rates than the
original vertical test wells. Negotiations are being held with the operator of
the adjacent Horizon Field in respect of a joint development plan for the P8
discovery and once these have been concluded, the Dutch authorities are to
make the formal award of the P8 Block to Grove.
Under Dutch law, EBN (the State participant) has the right to earn a 40%
interest in the P8 Block by funding its share of capital and operating costs.
Grove has been advised by EBN that it intends to exercise its farm-in right.
The P8 Block accumulation is contained within the Lower Cretaceous
Vlieland Sandstone reservoir that occurs at depths of around 1800 metres sub
sea. Water depth at P8 is approximately 33 metres and the discovery is
approximately 6 kilometres Northwest of Chevron's Horizon platform.
Also, during 2005, Grove applied for Exploration Licenses covering Blocks
F14, F18 and L1b. Grove's applications and work programme commitments are
currently being reviewed as part of the license award process.
Blocks F14, F18 and L1b contain a number of stranded Jurassic oil
discoveries encompassing a significant volume of oil in place. Historic well
test results were inconclusive and Grove will perform extensive re-assessment
in terms of geological and geophysical studies on the existing vintage 3D data
set and may drill further appraisal wells if required.
Glenn Whiddon, CEO, stated: "Entry into the Dutch Sector of the North
Sea, a prolific oil and gas province, will provide Grove with additional
opportunities for early cash flow. In realising our strategy we are enhancing
our portfolio with projects in politically stable regions with existing
infrastructure and a well established market. All 4 blocks we have applied for
contain existing oil discoveries. We believe that these oilfields can be
profitable developments and will add substantial value to our Company."
GROVE ENERGY LIMITED
Per "Glenn Whiddon"
GLENN R. WHIDDON, CEO
Some of the statements contained in this release are forward-looking
statements. Forward looking statements include but are not limited to,
statements concerning estimates of recoverable hydrocarbons, expected
hydrocarbon prices, expected costs, statements relating to the continued
advancement of the Company's projects and other statements which are not
historical facts. When used in this document, and on other published
information of the Company, the words such as "could," "estimate," "expect,"
"intend," "may," "potential," "should," and similar expressions are forward-
looking statements. Although the Company believes that its expectations
reflected in the forward-looking statements are reasonable, such statements
involve risk and uncertainties and no assurance can be given that actual
results will be consistent with these forward-looking statements. Various
factors could cause actual results to differ from these forward-looking
statements including the potential for the Company's projects to experience
technical or mechanical problems, geological conditions in the reservoir may
not result in a commercial level of oil and gas production, changes in product
prices and other risks not anticipated by the Company or disclosed in the
Company's published material. Since forward-looking statements address future
events and conditions, by their very nature, they involve inherent risks and
uncertainties.
Neither the TSX Venture Exchange nor the AIM Market operated by London
Stock Exchange plc approves nor disapproves of the information contained
herein.
The information contained herein does not constitute an offer of
securities for sale in the United States, United Kingdom, Canada, Japan or
Australia.
