DEO Petroleum says an agreement has been finalized by the license partners to combine two exploration blocks in the UK North Sea.
This relates to license P218 covering block 15/21a Gamma Sub Area (Gamma) and block 15/21g (Spaniards) areas.
DEO expects operator EnCore Oil to spud a commitment well this summer. DEO has a carried interest of 12.62% and will make no cash contribution to the dry-hole cost of the first well.
The Gamma/Spaniards equity is held by Encore (28%), Nautical Petroleum (21%), Serica Energy (21%), DEO (12.62%), Faroe Petroleum (8.4%), Maersk Oil (5.74%), and Atlantic Petroleum (3.24%).