Sherritt in Spain

Sherritt holds a 14.5% working interest in the Casablanca oil field, a 15.6% working interest in the Rodaballo oil field, a 29% working interest in the Boquerón oil field, and an 18.4% working interest in the Barracuda oil field, all located in the Gulf of Valencia, offshore Spain.

During 2011, these fields produced a combined average of approximately 416 bopd of light oil, net to the Corporation, using the Casablanca production platform. Oil produced from the Casablanca platform is transported directly to an onshore refinery at Tarragona through a 43 kilometer subsea pipeline. The crude is sold at a Brent benchmark price, with minor quality adjustments to Repsol Petroleo S.A.

In March 2007, the Corporation was awarded permits relating to explore four offshore blocks in the Alboran Sea in southern Spain. The four blocks named ‘‘Chinook A, B, C, D'' comprise a total area of 331,302 hectares. The blocks carry work commitments to be carried out over the next several years including a 3D seismic program and contingent wells. Sherritt is awaiting final regulatory approval to commence the work program.