In early October, Calculus Capital invested £1.62 million in Terrain Energy Limited. Terrain has been established to develop a portfolio of oil and gas producing assets in the UK. The company is wholly owned by funds under the management or advice of Calculus Capital and the board comprises individuals with significant financial, operational and legal experience in the oil and gas sector.
On 14th October, Terrain signed an agreement to acquire its first interests, which comprises a balanced portfolio of exploration, development and production interests from Egdon Resources for an initial consideration of £450,000 with a further £237,500 based on achieving agreed milestones. The interests are all located in the East Midlands and comprise of a 15% share in PEDL005(Remainder) and 25% interests in PEDL203, PEDL118 and PEDL206. Following completion Egdon will retain a 75% operated interest in all these licences.
PEDL005 (Remainder) contains the producing Keddington oil field and the North Somercotes gas prospect. It is intended to drill a sidetrack of the Keddington 2y well later in 2009 and a planning application is currently being prepared for an exploration well at North Somercotes. PEDL203 contains the producing Kirklington oil field where a sidetrack well is planned to access additional oil reserves and boost daily production rates from the field. PEDL118 contains the Eakring-Dukes Wood oil field which is the subject of a staged rejuvenation project where the Dukes Wood-1 well will complete drilling later in 2009. PEDL206 is a 13th Round exploration licence containing the abandoned Kelham and Caunton oil fields and is under technical evaluation. A drill or drop decision will be made on this licence by 30 June 2011.
The acquisition of the licences is subject to a number of approvals from the Department of Energy and Climate Change (DECC) and licence partners.
