Todays RNS28 Oct 2010 22:51
Thu, 28th Oct 2010 10:22
RNS Number : 1542V
Rheochem PLC
28 October 2010
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28 October 2010
Rheochem Plc
("Rheochem" or the "Company")
North Sea Blocks Offer
Rheochem plc, the oil and gas business with oil services, production, development and exploration assets is pleased to announce that its 100% owned subsidiary Zeus Petroleum Ltd "Zeus" has been offered eight appraisal and exploration blocks in the UK 26th Seaward Licensing Round by the UK Government Department of Energy and Climate Change. Zeus will be the operator of the blocks with a 90% interest. Partner Aimwell Energy has a 10% carried interest.
The Blocks offered are:
3/5 & 3/10c:
A 1980's gas discovery where low flow rates were encountered but a potentially large gas-bearing area has been mapped. Modern drilling/engineering practices should increase flow rates. These blocks are located adjacent to the Alwyn Fields, with infrastructure and facilities currently operated by Total.
9/17b & 9/22b:
These blocks contain a possible unrecognised oil discovery. A well was drilled in 1970's for a Jurassic target but encountered excellent shows over 150ft in the shallower Eocene horizon just down dip of a striking seismic analogy to the nearby Gryphon & Forth fields. The old well is thought to have been damaged during drilling by overbalanced drilling fluids.
16/8c:
Contains a well with proven oil on logs & RFT but was not tested. Numerous oil zones in different pressured sands. Close to Kingfisher field. Again modern engineering drilling practices are the key to unlocking reserves here.
14/27b:
This block was selected as protection acreage for the existing Thunderball gas discovery in 14/26b which is already licensed to Zeus. This block could contain significant upside potential, located directly up dip of the Thunderball discovery.
14/17:
Protection acreage for 14/11 to the NW (The southeast part of the Metis prospect is mapped into 14/17) .The Athena development in 14/18b is to the southeast.
13/16b:
Zeus has previously commissioned a competent persons report on this block which highlighted five prospects and two leads with total mid case recoverable prospective resources of 109mmbbls (98mmbbls net to Zeus).
The blocks are offered as promote licences. Promote licences allow Companies to get a Production Licence first and attract the necessary operating and financial capacity later The annual rental rate on a Promote Licence is reduced by 90% for two years. The licence will be drafted so as to require financial technical and environmental capacity to be in place, and a firm drilling (or agreed equivalent equally substantive activity) commitment to have been made, by the end of the second year, or the licence will expire at that time.
Haydn Gardner, CEO of Rheochem said:
"We are extremely pleased to have been offe
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