Stratic ceases operations on Well 16/2b-5A ("Cairngorm") in UK North Sea
CALGARY and LONDON, Jan. 9, 2009 (Canada NewsWire via COMTEX News Network) -- Stratic Energy Corporation (TSX Venture: 'SE', AIM 'SE.') ("Stratic" or the "Company") announces that following a series of operational difficulties, Stratic and its joint venture partner have decided to cease operations on well 16/2b-5A in the UK North Sea.
The operational difficulties included an unsuccessful attempt to retrieve drill pipe lost in the hole, which required the well to be re-spudded on 8th December 2008, and the failure of the top drive mechanism on the drilling rig last week, together with considerable downtime throughout the operation as a result of adverse weather conditions. The well was drilled to a total depth of 6,370 feet, having encountered oil shows in two exploration objectives (Skroo and Flugga), and has satisfied the work obligation on Block 16/2b. The planned deviated appraisal section of the well into the Cairngorm granite discovery was not attempted in the circumstances and the well is currently in the process of being abandoned. Stratic's share of the total cost of the well amounted to approximately $19 million. The joint venture partners will assess over the coming months whether further activity on the acreage is justified in the current economic climate.
Mark Bilsland, Stratic's Chief Operating Officer commented: "We are naturally disappointed not to have completed the drilling of well 16/2b-5A but, given the current economic climate, we believed we had reached the point where the risks of continuing outweighed the likely benefits. In these circumstances the prudent course of action was to cease operations and limit our exposure to further costs."
About Stratic: Stratic Energy Corporation is a Canadian-incorporated international oil and gas business focused on adding value principally through the appraisal, development and production of existing discoveries, supplemented by a low to moderate risk exploration program. Stratic's principal interests are in the UK and Dutch sectors of the North Sea, Italy, Turkey and Syria. Its shares are listed on the TSX Venture Exchange in Toronto and on AIM, London and its principal operating office is in London, UK.
Forward-looking statements
This news release contains certain forward looking statements, which involve assumptions with respect to future plans, production levels and results, and capital expenditures. The reader is cautioned that all such forward looking statements involve substantial risks and uncertainties and the assumptions used in their preparation may not prove to be correct. Stratic's actual results could differ materially from those expressed in, or implied by, these forward looking statements and accordingly, the forward looking statements are qualified by reference to these cautionary statements. The forward looking statements contained herein are made as at the date of this news release. Stratic undertakes no obligation to update or publicly revise forward looking statements or information unless so required by applicable securities laws.
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TSX-V and AIM notifications
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the contents of this
release.
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Stratic's Chief Operating Officer, Dr Mark Bilsland BSc (geology), PhD (petroleum petrophysics), and member of the SPE, is the qualified person who has reviewed and approved the technical information in this announcement for the purposes of the AIM Rules for Companies (incorporating the Guidance Note for Mining, Oil and Gas Companies).
SOURCE: Stratic Energy Corporation
Kevin Watts, President and Chief Executive Officer, +44 20 7766 7910; John van der
Welle, Chief Financial Officer, +44 20 7766 7900; Mark Bilsland, Chief Operating
Officer, +44 20 7766 7900; Patrick d'Ancona, M: Communications, +44 20 7153
1547; Canadian Investor Relations, Roger Fullerton, (952) 929-7243, Email:
roger.fullerton@straticenergy.com, Website: www.straticenergy.com
Copyright (C) 2009 CNW Group. All rights reserved.
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