Fossil Energy – North Sea
Australia-based Finder Energy (FDR) has signed farm-out agreements with Dana Petroleum for three licenses in the Central North Sea.
The agreements will see Finder assign Dana a 40 per cent interest in three licenses, P2527, P2528 and P2530, conditional on regulatory approvals which are expected to be obtained within a month.
Finder will retain the remaining 60 per cent interest and ownership in each of the licenses.
Through this, Finder will maintain the right to seek secondary farmouts and secure funding for wells, while retaining ‘meaningful levels of participation’ in any discovery.
Dana said it will cough up a cash payment totalling £1.3 million (A$2.3 million) when the deal is complete.
Dana Petroleum also agreed to contribute to the forward work program on each licence. This will result in a reduction to Finder’s budgeted expenditure, ensuring Finder’s forecast cash runway will be extended by more than 12 months.
