PRD Energy Inc. report that its wholly owned subsidiary, PRD Energy GmbH, has entered into definitive agreements with GDF SUEZ E&P Deutschland GmbH to farm into the Boerger-Werlte Oil Pool (Boerger) located in Lower Saxony, Germany.
Under the agreements, GDF SUEZ will act as operator and PRD will act as drilling and completions subcontractor. PRD is entitled to earn a 50% participating interest in Boerger upon funding all of the costs associated with drilling, completing and testing of one productive re-entry well (estimated at EUR2,500,000) and up to EUR800,000 of the costs associated with a 20 sq. km 3D seismic program.
The Company will fund these costs from existing cash balances. Boerger produced approximately 950,000 bbls of oil prior to being suspended in 2003.