Enegi, the independent oil and gas Company with a portfolio of assets located in the UK North Sea, Newfoundland Canada, Ireland, and Jordan has announced, that along with its Joint Venture (“JV”) partner ABTechnology (“ABT”), it has signed Heads of Agreement (“HOA”) with Antrim Resources (N.I) Limited that governs UK Central North Sea Licence P077 which contains the Fyne Field . Antrim currently holds a 100% interest in and is Operator of the Licence.
Under the HOA, Enegi and ABT will be responsible for the costs associated with preparing an amended Field Development Plan for Fyne (the “FDP”), based on using ABT’s buoy technology, for submission to the UK Department of Energy and Climate Change (“DECC”). Upon approval of the FDP by DECC, the JV will earn a 50% interest in the development of Fyne. A FDP has been previously prepared for Fyne and much of this work can be integrated into the new FDP.
Fyne has been subject to considerable investment to date. Five successful wells have already been drilled, producing oil at 25o API and achieving free flow test rates of up to 4,000 bopd. Fyne has 2P reserves of 9.9 million barrels and, being well appraised, it is now ready to be developed and ABT’s buoy technology has been identified as the most suitable development solution.
The HOA is the first agreement that the JV has entered into following the announcement of its formation on 29 May 2013. The agreement is in accordance with the JV’s stated strategy for Enegi and ABT to work together to secure and develop interests in stranded, offshore oil reserves which can be accessed utilising ABT’s buoy technology. The JV and Antrim expect to conclude an agreement which contains the terms in the HOA shortly.
Alan Minty, CEO of Enegi Oil commented:
“We are delighted to have entered into this agreement with Antrim. This is an example of how we can use the buoy solution to gain reserves and production in well appraised, and therefore geologically low risk, assets for a fraction of the price of traditional acquisition routes.
“The Fyne field is an ideal opportunity to show the potential of the buoy solution and is an example of how significant value can be unlocked in an asset which would otherwise have remained undeveloped. We look forward to working with the Antrim team to gain FDP approval for Fyne, and unlocking the full value of this project for our mutual benefit.
“We anticipate that this will generate significant interest in the use of buoy technology as a development solution and could be the advent of a new era in the development of the North Sea. The model we have devised would allow us to undertake multiple projects simultaneously in conjunction with Fyne.”
Press Release, July 2, 2013; Image: Antrim