InfraStrata, an independent petroleum exploration and gas storage company, is farming out its Petroleum Licence P2123, offshore Ireland, in order to secure funds to drill a well on a licence onshore Ireland that is adjacent to P2123.
InfraStrata and its joint venture partner Brigantes Energy Limited, that is 45% owned by InfraStrata, entered into a series of farm-out agreements, both together and separately, which together will result in completion of the funding for the planned Woodburn Forest-1 well in licence PL1/10, in Northern Ireland.
In November 2015, InfraStrata announced that together with Brigantes it was seeking to farm-out a 60% interest in PL1/10 to pay the outstanding 80% required to complete the funding of the Woodburn Forest-1 well. At the same time, the company announced it had signed a farm-in agreement with Ermine Resources Limited (15% interest).
The additional new investors that have now entered into farm out agreements for the remaining 45% interest in licence PL1/10 are Tudor Hall Energy Limited (10%), Baron Oil Plc (10%), Southwestern Resources Limited (16%) and Petro River UK Limited (9%). According to InfraStrata, all the parties are expected to acquire corresponding interests in the adjacent offshore Petroleum Licence P2123 for paying the costs attributable to that interest from the beginning of the licence term in December 2013.
In order to facilitate the agreements, the company has also signed a supplemental sale and purchase agreement with Brigantes, replacing the outstanding obligations under a sale and purchase agreement, signed and previously announced in March 2013. Under the supplement, there will be a transfer of a 5% interest in PL1/10 from Brigantes to InfraStrata, a 10% interest from InfraStrata to Brigantes in P2123 and the payment of £86,459 cash from Brigantes to InfraStrata.
All these licence interest assignments will be subject to the approval of the Department of Enterprise, Trade and Investment (DETI) for PL1/10 and the Oil and Gas Authority (OGA) for P2123.