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- P8a Production Licence awarded to Grove containing Horizon West oil
field
- Horizon West oil field contains approximately 50 - 70 million barrels
of STOIIP
- Three wells on structure - test rates up to 900 barrels a day
- Intended development via Chevron's P9 Horizon Platform 6km to east
allowing for early development and cash flow
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VANCOUVER, Oct. 30 /CNW/ - Grove Energy Limited ("Company")(TSX-V &
AIM: GRV), the oil and gas exploration company with assets in Europe and the
Mediterranean Margin, has been formally awarded the Horizon West (P8a)
Production Licence (the "Licence") in the Dutch North Sea. The Licence
contains the Horizon West Oil Field ("Horizon West") discovered in 1982.
The Licence provides for development from Chevron's P9 Horizon Platform
and for participation of the Dutch State via EBN which will result in the
following participation: Grove 48%; EBN 32%; Chevron 16% and Dutch State
Mining 4%. All parties will fund the development in accordance with their
working interest. The 15 year Licence covers an area of 26.17 sq. km.
Horizon West was discovered by Mobil in 1982. Three vertical wells were
drilled on structure and test rates were up to 900 barrels of oil per day of
38.4 API quality crude. It is believed that the field contains approximately
50 - 70 million barrels of Stock Tank Oil Initially in Place ("STOIIP") and
historical data suggest recoverable reserves of between 8 - 12% of STOIIP. The
Horizon West field lies within the Lower Cretaceous Vlieland Sandstone
reservoir at a depth of around 1,800 meters sub sea in approximately 33 meters
of water.
An independent reserve report is being prepared pursuant to Canadian
National Instrument 51-101 requirements for Reserve Reporting. This report
will be lodged in December 2006.
Development will be managed by Chevron from its P9 Horizon Platform 6km
to the east and will involve drilling a horizontal extended reach well,
thereby reducing capital expenditures and bringing forward development and
first production. The horizontal well will expose a much larger section of the
reservoir which should result in substantially higher flow rates than achieved
on the vertical well tests.
Agreement with Chevron, of a joint development and operating plan,
including processing and transport tariffs, is well advanced.
Grove intends to arrange a loan facility to fund development and
discussions have commenced with a number of financial institutions.
The Horizon West P8a Production Licence together with Exploration Blocks
F14, F18 and L1b provides Grove with a material acreage position in the Dutch
North Sea. After the recent sale of the majority of its UK North Sea
interests, Grove has three core areas including development of the Abbadesse
natural gas discovery onshore in Italy; the exploration programs on and
offshore Tunisia and the Sicily Channel; and now the Dutch North Sea.
Dr. Wolfgang Zimmer, President of Grove, commented that "The grant of the
Horizon West oil field is a significant milestone for Grove. This exceptional
opportunity greatly enhances Grove's portfolio with a project near existing
infrastructure and market. We believe that this oilfield can be a profitable
development and will substantially increase Company and investor value. "
A location map of the Horizon West oil field may be found at
www.groveenergy.com and additional information on the Dutch North Sea may be
found at http://dinolks01.nitg.tno.nl/dinoLks/NLOGPortal.jsp
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GROVE ENERGY LIMITED
Per "Glenn Whiddon"
---------------
GLENN R. WHIDDON, CEO
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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 in 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.
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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.
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