Realm Partners With ConocoPhillips in Paris Basin
Recent legislation introduced by France to ban the practice of hydraulic fracturing in the extraction of unconventional hydrocarbons has not discouraged a US energy major from seeking to investigate the prospective Paris Basin.
Realm Energy International Corp. has entered into a farm-out agreement with ConocoPhillips to conduct joint exploration activities in the Paris basin in France.
Realm Energy has made applications for exploration licences for 1.65 million acres in the Paris basin. The applications comprise nine separate exploration permits and include all rights to explore for oil and gas in all formations underlying the lands. The time frame for making applications for the licences has ended.
Realm Energy has entered into a farm-out agreement with ConocoPhillips for the purpose of conducting joint exploration activities on selected exploration licences that may be awarded as a result of these applications. The farm-out agreement provides Realm Energy with a limited carry on exploration expenditures and financial incentives conditional on acreage acquired and activity levels permitted by the government.
Realm Energy will be the designated operator for the initial exploration phase, and ConocoPhillips has the option to operate thereafter. The farm-out agreement is conditional on the final award to Realm Energy of permits for a portion of the lands in the Paris basin, and government approval of the joint participation of Realm Energy and ConocoPhillips.
Craig Steinke, chief executive officer of Realm Energy, stated: "ConocoPhillips brings a wealth of experience in oil and gas operations as well as a high level of health, safety and environmental standards. Realm Energy is looking forward to working with ConocoPhillips on joint operations in France and having a long and successful partnership."
Realm Energy said that the company and ConocoPhillips intend to comply fully with all relevant legislation governing petroleum operations in France in connection with their joint exploration activities.
Source: Realm Energy