Farm-in triggered for NU-Oil investment

19th Feb 2016 09:52

(ShareCast News) - NU-Oil updated the market on one of its Irish interests on Friday, in which one of its investments - Marginal Field Development Company (MFDevCo) - was undertaking a farm-in to the Helvick and Dunmore oil discoveries.Its stake in MFDevCo was 50%, and the farm-in agreement was initially announced on 13 November 2013.The AIM-traded oil and gas company said a two-year lease in respect of both discoveries had been granted by the Minister of State at the Department of Communications, Energy and Natural Resources, with effect from 1 March.It would allow for the evaluation of low-cost development options, and triggered a staged 50% farm-in by MFDevCo, with an agreed work programme for stage equity participation.That included a 10% initial working interest assignment to MFDevCo, subject to ministerial consent, and further equity assignment of up to 40% based on undertaking the agreed work programme and receipt of a Petroleum Lease from from the minister and the approval of any Plan of Development."MFDevCo and the MFD Consortium's solutions have the potential to improve the commercial viability of fields, and we look forward to them being utilised to advance Helvick and Dunmore for the benefit of all interest holders," said NU-Oil CEO Nigel Burton.NU-Oil said the Helvick oil field was located in Block 49/9, around 36 kilometres (22.37 miles) off the south coast of Ireland, and the Dunmore discovery was located around 20 kilometres north of the Hook Head discovery in the Celtic Sea.