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PRD Energy Inc.’s wholly owned subsidiary, PRD Energy GmbH, has entered into definitive agreements with GDF SUEZ E&P Deutschland GmbH to farm into the Boerger-Werlte Oil Pool in Saxony, Germany.
Under the agreements, GDF SUEZ will act as operator and PRD will act as drilling and completions subcontractor. PRD is entitled to earn a 50% participating interest in Boerger upon funding all of the costs associated with drilling, completing and testing of one productive re-entry well and up to $982,208 of the costs associated with a 20 sq km 3D seismic program.
The re-entry well is expected to be drilled to a total vertical depth of less than 2,000 m (6,561 ft). This operation will primarily target the Malm formation, a highly permeable and porous conventional zone with a history of oil production. Other potential zones will also be tested.
Production from this well would be shared equally between GDF SUEZ and PRD. Initial production will be trucked to a local refinery located in close proximity to the well location.
is anticipated that the re-entry well and seismic will be completed, tested and interpreted on or before the end of first quarter 2013.
Upon completion of the seismic and interpretation program, the parties will prepare and approve a field development plan for Boerger. It is anticipated that the parties will commence drilling activities on additional wells during summer 2013. Reservoir configuration as defined by the 3D seismic program and well productivity, will determine the number of wells necessary to effectively optimize the field.