HOUSTON, May 11 -- Hess Corp., New York, and Toreador Resources Corp., Paris, will jointly tackle Toreador’s shale oil permits in France’s Paris basin.
If the French government approves, the companies will finalize a definitive agreement under which Hess will earn a 50% interest in Toreador’s Paris basin exploration permits. Toreador holds 680,000 acres, and award of another 360,000 acres is pending.
“The partnership combines Toreador’s position covering the Paris basin shale oil resource with Hess’ position as a leading shale oil producer in the US along with its international operating and financial strengths,” the companies said.
Under the terms of the agreement, Hess will pay $15 million initially and invest as much as $120 million in fulfillment of a two-phase work program. Phase 1 will consist of an evaluation of the acreage and drilling six wells, with the first well planned for later this year. Depending on the results of Phase 1, Phase 2 is expected to consist of appraisal and development activities.
Following Phase 2, provided contractual obligations have been met, Hess will hold a 50% percent share of Toreador’s working interest in the covered permits.
Toreador has been promoting the Paris Basin shale for about two years, but since Toreador has been only talking not delivering the most of the market hasn't taken the play seriously. Jean Leherre publicly debunked Toreados's claims about the potential amounts of oil in the shale.
The target formation in the the Paris Basin is the Lias Shale and Vermilion Energy Trust, which has about 180 000 acres of mineral rights in the in the Paris Basin has been reviewing the potential of the shale.
No comments:
Post a Comment