Enovation Resources Agrees Successful Farm-out of Handcross Prospect

Enovation Resources an oil & gas exploration, development and production Company, is pleased to announce the execution of a Farm-Out Agreement between its 100% owned North Sea subsidiary, Sussex Energy Limited, and Valiant Petroleum Limited ('Valiant') relating to the Handcross prospect in Licence P.1631, Block 204/18b.
Under the agreement Valiant will acquire an additional forty percent (40%) participating interest in the Licence and Block in exchange for the payment of certain dry hole well costs in respect of Sussex's remaining participating interests.
Following completion of the transfer, the participating interests of the parties will be: Valiant ninety percent (90%) (Operator) and Sussex ten percent (10%). Sussex also has certain rights in agreed circumstances to increase its participating interest in the Licence and Block by a minimum five percent (5%) for a total of a minimum of fifteen percent (15%) participating interest. The agreement is subject to DECC consent.
The agreement, along with Valiant's recent success in the 26th Round securing blocks 204/14c and 204/19c adjacent to the existing Handcross acreage means the partnership has control over the entire Handcross Prospect with total gross P50 prospective resources of around 200 mmboe. Sussex would like to drill the well in 2011 and Valiant has stated that it is talking to several parties to secure a suitable deepwater rig in the timeframe.
Commenting, Diz Mackewn, CEO said:
"We are delighted to have closed this important transaction with our partners in the Handcross Prospect, which, together with the award of the adjacent blocks, enables the drilling plans for this high impact exploration prospect to be advanced. This well now represents real near term growth potential for the business".
Source: Press release