Petrel Resources plc [PET] - Update on Irish Offshore Exploration
20 September 2012
Petrel Resources plc
(“Petrel” or the “Company”)
Update on Irish Offshore Exploration
Petrel Resources (AIM: PET) today provides an operational update on work done on Blocks 35/23, 35/24 and the western half of 35/25, and Blocks 45/6, 45/11 and 45/16 in the Atlantic Margin. These cover approximately 1,400 km2 in total, in the northern and eastern sections of the Porcupine Basin.
• Management is encouraged by results emerging from the technical study of the Option blocks in the northern and eastern sections of the Porcupine Basin.
• The first two phases of work are now complete.
• Several new targets have been identified.
• Our focus is on the northern and eastern parts of the Porcupine Basin where, as part of our analysis, we are inverting selected seismic data to test the anticipated presence of reservoir sands. The results will be integrated into our interpretations and allow us to extrapolate data from historic wells.
• High oil prices, improving technology and competitive terms are fuelling industry and market interest in offshore exploration.
David Horgan, Managing Director of Petrel Resources plc, commented:
“We are excited by the progress being made in the Atlantic margin, as we look to develop our promising assets and yield value for shareholders.
“Petrel has identified encouraging targets at the Lower Cretaceous and Tertiary levels in both sets of our blocks, with those in blocks in quadrant 35 looking particularly promising. Our objective is to develop targets that will attract large partners, to facilitate an early seismic campaign, followed by exploration wells.
“In October 2011 Petrel was awarded licensing options over 1,400 km2 in the Atlantic Porcupine Basin. Porcupine Basin exploration previously concentrated on Jurassic targets like those in the northern North Sea. Lack of commercial success led to interest fizzling out. As a result, no true exploration wells were drilled in the Porcupine Basin over the last decade. Success in comparable reservoirs elsewhere, especially in the West African offshore, led to fresh ideas and a resurgence of interest in similar targets offshore Ireland.
“This has led to International oil companies re-examining the Irish offshore. Success in the Atlantic margin elsewhere shows what can be achieved with new thinking and improving technology. Additionally the high oil price and competitive terms are making Ireland more attractive.”