PA Resources has secured a two year extension from the Danish Energy Agency on Licences 12/06 and 9/06 and has elected to withdraw from the Licence 9/95 located offshore Denmark.
License 12/06 is operated by PA Resources with a working interest of 64%, while the other two licenses - 9/06 and 9/95 - are Maersk-operated, with PA Resources holding a 26.8% working interest.
Broder Tuck gas / condensate discovery and Lille John oil discovery are both part of the 12/06 License, which now stands extended until 2014.
Bo Askvik, PA Resources President and CEO, said the company's primary focus in Denmark is to progress the Lille John oil discovery and Broder Tuck gas / condensate discovery towards development.
"We see greater shareholder value in our focus on these discoveries and relatively shallow exploration in Licence 12/06 and our adjacent German acreage," said Askvik.
The 9/95 Licence is being extended with a commitment to drill a deep HPHT well targeting a complex Upper Jurassic gas exploration prospect, which PA Resources regards as relatively high risk.
As a result, subject to the Danish Energy Agency's approval, PA Resources has elected to withdraw from this licence.
In 2009, the Gita 1X-well in Licence 12/06 indicated the presence of hydrocarbons in the Middle Jurassic HPHT (high pressure high temperature) secondary target but with low permeability.
Subsequent studies have indicated to reduced risk to the possibility of producing hydrocarbons and therefore PA Resources will continue to hold its 26.8% interest. A decision to commence drilling at this well must be made by October 2013.