Petro River Oil Corp. Provides Update on Horizon Energy Partners' Oil & Gas Interests Adjacent to Wytch Farm

Petro River Oil Corp. today provided an update from Horizon Energy Partners, LLC ("Horizon Energy") regarding the development progress of two separate oil and gas interests comprising approximately 28,000 acres in the Dorset area of Southern England. Petro River is currently a party to a conditional purchase agreement to acquire an interest in Horizon Energy.

The Dorset area is located just south of and adjacent to the giant Wytch Farm oil field, the largest onshore oil field in Western Europe, having produced approximately 500 million barrels of oil and 175 billion cubic feet of natural gas since first production in 1979. The Wytch Farm oil field was discovered by the British Gas Corporation in December 1973 and began producing oil in 1979. As part of the privatization of British Gas ("BG") in the 1980's, Wytch Farm was sold to British Petroleum ("BP"), which took over as operator in 1984. For almost three decades, BP enhanced the development of the field by employing modern technology, primarily in the geoscience and engineering areas. In May 2011, BP sold its majority interest in Wytch Farm to Perenco, a private independent oil and gas company.

Both of the licenses were acquired by Southwestern Resources Ltd. ("Southwestern"), a wholly owned subsidiary of Horizon Energy, and are in areas that are directly in the migration fairway of the rich, Liassic oil "kitchen," which has sourced the Wytch Farm oil field. The Dorset area is highly prospective for commercial oil and gas discoveries and Southwestern will be diligently pursuing all potential opportunities on its holdings.

Dorset Offshore License.

Horizon Energy owns a 10% interest in offshore license P1918, with an option to acquire an additional 65% by electing to drill a well prior to April 30, 2016 (the "Dorset Offshore License").

  • The Dorset Offshore License comprises approximately 26,000 acres.
  • Horizon Energy and its partners recently completed a merge and pre-stack depth migration reprocessing of two existing 3-D seismic surveys within the license area. The results confirm and enhance the previous interpretation of two structural features within the license.
  • A number of historical wells drilled within the license area have encountered oil and gas shows and three flowed oil and/or gas on test.
  • Subject to further interpretation, Horizon Energy believes at least 20 million barrels of recoverable prospective oil resources are contained in the larger structural feature, known as Colter. The process of identifying industry participants to drill a well to further delineate the Colter prospect is currently underway.
  • In January 2016, a new 2-D line that will "tie" the onshore and offshore data sets will be acquired (the "2-D Tie Line"). If this data confirms the current interpretation, it will high-grade another offshore hydrocarbon prospect that can be drilled from an onshore location.
  • Based on internal, prospective resource calculations, all of these prospects will be commercially economic, even in the current energy commodity price environment.

Dorset Onshore License.

Horizon Energy owns a 50% interest in applications submitted to the United Kingdom Oil & Gas Authority ("OGA") pursuant to the UK 14th onshore license round (the "Dorset Onshore License").

  • On December 17, 2015, the OGA awarded Southwestern and partners two blocks within its application area, comprising over 2,000 acres.
  • Subject to the results of the 2-D Tie Line, one of these blocks will afford access to a land surface location that will enable them to drill a well onshore to the Dorset Offshore License area.
  • The work program going forward on the newly awarded blocks will include the acquisition of a new 3-D seismic survey to more clearly delineate the traps comprising the pre-existing leads generated with older 2-D seismic data.

Source: Petro River Oil Corp
Date: Dec 21, 2015