Petrel Resources has been awarded Frontier Exploration Licenses (FEL) 3/14 and 4/14 in the Irish Atlantic Porcupine basin.
The acreage licensed collectively covers about 1050sq km or 75% of the 1400sq km previously held under Licensing Options 11/4 and 11/6.
In August 2013, Petrel farmed out 85% of its interest in, and operatorship of, the licensing options to Woodside Energy (Ireland).
The FELs are valid for 15 years, with an initial three-year phase, followed by three phases of four years each.
The main elements of the first phase are reprocessing of historic 3D seismic, environmental studies, and, subject to regulatory rules and permits, may include the acquisition of new, state-of-the-art 3D seismic. Preparatory technical and environmental work is underway.
Petrel is 100% carried through phase one of the work program, which covers the next three years.
The main element of the second phase, should the parties elect to enter it, would be the drilling of a well on each FEL, for which Petrel would be substantially carried.
As set out in the company's technical update announcements in respect of these licenses, Petrel launched the farm-out process with the objective of finding the best partner with the vision as well as technical and financial resources and strategic intent to pioneer new hydrocarbon plays in an under-explored, deep-water frontier basin.
The Woodside transaction and license awards represent the successful conclusion of this process.