Ithaca Farms Out Beverley License to Shell

UK junior Ithaca Energy reported Monday that it is farming out to Royal Dutch Shell half of its 40-percent interest in UK license P1792, including blocks 21/30f and 22/26c (which cover the Beverley prospect), in the central North Sea.

Ithaca said the farm-out is in exchange for Shell's partial carry of Ithaca's 20-percent share of the costs of a well on the Beverley prospect. The well is required to be drilling by early 2015, according to the license terms.

As well as the Beverley prospect, the P1792 license contains the Belinda and Evelyn discoveries.

Ithaca also confirmed that an appraisal well on the Norvarg discovery, located in production license 535 in the Norwegian sector of the Barents Sea, has begun drilling. The well, operated by Total E&P Norge, is aimed at proving up the volume potential in the northeastern segment of the Norvarg closure. Drilling operations are expected to last 70 days.

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