ENP Newswire - 29 May 2014
Release date- 28052014 - First quarter 2014 witnessed a crucial landmark for Rocksource ASA.
The Company took part in one of the most significant finds on the Norwegian Continental Shelf ('NCS') in recent years; the Pil discovery located in the Norwegian Sea.
First quarter 2014 witnessed a crucial landmark for Rocksource ASA ('Rocksource' or 'Company'). The Company took part in one of the most significant finds on the Norwegian Continental Shelf ('NCS') in recent years; the Pil discovery located in the Norwegian Sea.
A sidetrack to appraise Pil is now about to be completed. Initial results confirm it as a success, which underpins Rocksource's view that Pil is a significant commercial discovery. Rocksource has now updated its resource estimate for Pil to a range of 90 to 150 million barrels oil equivalent (mmboe) with a mean volume of 115 mmboe, based on the existing information from the appraisal well.
Rocksource's updated estimate has two key implications. First, this appraisal well has narrowed the resource range. Secondly, it has significantly upgraded the low resource case thereby enhancing confidence in Pil's commerciality. The current official volume range published by both VNG Norge AS ('VNG'), the operator, and the Norwegian Petroleum Directorate prior to the appraisal well was 50 to 170 mmboe.
Following the transformational Pil discovery, Rocksource is exposed to extensive follow-up exploration potential particularly in 2015. The operator VNG has already secured rig capacity for 2015 with the goal to test this. Rocksource estimates that the remaining resource potential (unrisked) significantly exceeds the discovered mean volumes at Pil.
The recent successful awards in the APA 2013 Licensing Round once again demonstrated Rocksource's ability to compete successfully in the licensing rounds in Norway. Rocksource's achievement in this area is a testament to the Company's strong technical abilities. Organic growth through licensing rounds will remain a core strategy for Rocksource on the NCS.
While Rocksource is primarily focused towards the NCS, the Company continues to seek partners for its GoM portfolio. Progress remains slow, but recent marketing activity shows that interest is reviving.
The proposed NOK 40 million rights issue (net of costs) to be resolved at the 28 May AGM will secure completion of the ongoing Pil and Bue programme and secure working capital for the remainder of 2014. The Company is continuously evaluating adequate measures to ensure a more long term robust capitalisation.
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