LONDON -- Northern Petroleum has signed an agreement with Azimuth Ltd for two of its permits in the Italian sector of the Adriatic Sea.
Permits F.R39.NP and F.R40.NP contain the Rovesti and Giove oil discoveries, discovered in 1978 and 1998 by Eni and Enterprise Oil, respectively, along with 10 mapped prospects. Northern and Azimuth Ltd will collaborate to define and delineate suitable appraisal and exploration drilling targets.
Azimuth will also take a 15% interest in both permits by funding a promoted share of future work programs prior to drilling.
However, the farm-in terms are subject to approvals from the Italian authorities.
Blackwatch Petroleum Services has estimated probable oil reserves in Giove and Rovesti at 53.2 MMbbl. Northern has identified further potential for oil prospects in the concession with a mean of over 3 Bbbl in place and gas prospects with a mean of over 2 tcf in place.
Derek Musgrove, managing director of Northern Petroleum, said: "We have surmised that the decisions by previous companies not to move these two discoveries towards development could be attributed to the depth of water of Rovesti in the context of the then prevailing oil industry capabilities and costs, and that Giove was found to be smaller than originally mapped and at the time low oil prices prevailed."
Azimuth links with Northern offshore Italy