RWE Dea has reached an agreement with Valiant Causeway to farm-in to Licences P1631 and P1832, and participate in the drilling of the Handcross prospect in the UK Continental Shelf (UKCS), West of Shetland.

Under the terms of the agreement, RWE Dea will acquire a 20% equity in part of blocks 204/14c, 204/18b and 204/19c. Handcross is a Palaeocene prospect located in the Judd Basin in the UKCS West of Shetland with an estimated volume of about 115 million barrels of oil equivalent (MMboe). Valiant Causeway will retain operatorship.

RWE Dea is thereby further strengthening its position in the UK Continental Shelf. “The farm-in to Handcross consolidates our acreage position in the UK and is another important step in the RWE Dea strategy to grow the UK business via exploration drilling,” says René Pawel, Managing Director of RWE Dea UK. “Handcross builds upon Licence P2018, which we have been offered in the UKCS 27th Offshore Licensing Round and fits perfectly into our expanding portfolio of North Sea and West of Shetland assets,” Pawel explains.

In August 2012, RWE Dea UK started production from the operated Clipper South gas field and in October last year from the Devenick gas field, where the company is licence partner. As operator with a 70% stake RWE Dea is currently intensifying the field development of the Breagh gas field, for commencing production during 2013.

The farm-in agreement with Valiant will be effective as of November 2012, subject to approval from Department of Energy & Climate Change of the UK Government.