Arrow Exploration Corp. press release
Grove Energy Limited - Grove builds portfolio in Dutch Sector of North Sea
TSXV - TSX Venture Exchange · Oil · Natural Gas · Canada
Grove builds portfolio in Dutch Sector of North Sea via
P8 Production License
Blocks F14, F18 and L1b Exploration Applications
VANCOUVER, April 12 /CNW/ - Grove Energy Limited ("Grove") (TSX-V & AIM: GRV) the oil and gas exploration company with its primary assets in Europe and the Mediterranean Margin, has expanded its European portfolio via the application for the P8 Production License, which contains a proven undeveloped discovery and submissions for Exploration Licenses over Blocks F14, F18 and L1b, also containing unappraised oil discoveries. A Production License over the P8 Block in the Dutch North Sea ("P8 Block") has been applied for and Grove is in the final stages of the block award. The P8 Block contains a proven undeveloped oil accumulation discovered by Mobil in 1982, with three wells drilled on structure. The wells flowed between 500 to 800 barrels of oil per day during testing from vertical wells. An independent reserve report is being prepared pursuant to National Instrument 51-101 requirements for Reserve Reporting in Canada and will be issued upon the final granting of the Production License. A number of development scenarios are being evaluated, however the preferred option is currently a horizontal long reach extended well from the Horizon platform which is approximately 6 km from the P8 discovery. A horizontal well should result in substantially higher flow rates than the original vertical test wells. Negotiations are being held with the operator of the adjacent Horizon Field in respect of a joint development plan for the P8 discovery and once these have been concluded, the Dutch authorities are to make the formal award of the P8 Block to Grove. Under Dutch law, EBN (the State participant) has the right to earn a 40% interest in the P8 Block by funding its share of capital and operating costs. Grove has been advised by EBN that it intends to exercise its farm-in right. The P8 Block accumulation is contained within the Lower Cretaceous Vlieland Sandstone reservoir that occurs at depths of around 1800 metres sub sea. Water depth at P8 is approximately 33 metres and the discovery is approximately 6 kilometres Northwest of Chevron's Horizon platform. Also, during 2005, Grove applied for Exploration Licenses covering Blocks F14, F18 and L1b. Grove's applications and work programme commitments are currently being reviewed as part of the license award process. Blocks F14, F18 and L1b contain a number of stranded Jurassic oil discoveries encompassing a significant volume of oil in place. Historic well test results were inconclusive and Grove will perform extensive re-assessment in terms of geological and geophysical studies on the existing vintage 3D data set and may drill further appraisal wells if required. Glenn Whiddon, CEO, stated: "Entry into the Dutch Sector of the North Sea, a prolific oil and gas province, will provide Grove with additional opportunities for early cash flow. In realising our strategy we are enhancing our portfolio with projects in politically stable regions with existing infrastructure and a well established market. All 4 blocks we have applied for contain existing oil discoveries. We believe that these oilfields can be profitable developments and will add substantial value to our Company."
GROVE ENERGY LIMITED Per "Glenn Whiddon" GLENN R. WHIDDON, CEO
Some of the statements contained in this release are forward-looking statements. Forward looking statements include but are not limited to, statements concerning estimates of recoverable hydrocarbons, expected hydrocarbon prices, expected costs, statements relating to the continued advancement of the Company's projects and other statements which are not historical facts. When used in this document, and on other published information of the Company, the words such as "could," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are forward- looking statements. Although the Company believes that its expectations reflected in the forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors could cause actual results to differ from these forward-looking statements including the potential for the Company's projects to experience technical or mechanical problems, geological conditions in the reservoir may not result in a commercial level of oil and gas production, changes in product prices and other risks not anticipated by the Company or disclosed in the Company's published material. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.
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The information contained herein does not constitute an offer of securities for sale in the United States, United Kingdom, Canada, Japan or Australia.