Horizon has contractual rights to participate for a 50% interest with Ardent Oil Limited (‘Ardent’), an experienced UK-based oil and gas prospect generating company, in four recently awarded offshore licenses granted to Ardent in the 7th offshore licensing round in Denmark.
The licenses are all located in unique geological settings and require modest work programs. In total, the license award areas comprise approximately 1,900 square kilometers (800 square miles). Offshore Denmark is a very prospective, underexplored oil basin on trend with massive oil and gas fields offshore in Norway and the United Kingdom. Although high risk, the identified leads on the awarded licenses contain prospective recoverable resources (most likely case) of over 900 million barrels of oil and 3.5 trillion cubic feet of natural gas. The upside case is larger.
The fiscal terms are excellent, political risk in Denmark is non-existent and the Danish State participates for a 20% paying interest in each license.
|Denmark at a Glance|
|Working Interest||Horizon – 30% Petro River - 13.75%|
|Geophysics||Acquiring new 30 sq. miles of 3D Seismic survey|
|Work Completed||Assembled leases covering core of Kern County Field|
|Historical Work||Produced over 100 MM boe from numerous wells|
|2016 Activity||Processing and interpretation 3D seismic survey; possible initial well|