Under the terms of the farm-out agreement, Wintershall will secure the interest in blocks 43/15a and 43/20a by payment of a cash sum and by contributing on a promoted basis to the cost of drilling an exploration well on the Bennett prospect. It is expected that a well will be drilled on the prospect in 2008.
Alan Booth, CEO of EnCore, said: We are pleased to be entering into this new partnership with Wintershall, an established operator in the North Sea. We look forward to drilling the Bennett prospect, which we believe to be one of the high impact wells in our drilling program. We have also entered into a non-binding letter of intent to farm out an additional equity interest in the license to an undisclosed third party, and negotiations are at an advanced stage.
