North Energy has entered into a sale and purchase contract with Tullow Oil Norge AS, under which North Energy acquires a 10 per cent interest in production licences 591 and 591 B on the Norwegian continental shelf.
These holdings are located on the Halten Terrace in the Norwegian Sea, in the immediate vicinity of several producing fields. An application has been made to the government for permission to drill exploration wells in the licence, and the first is planned in 2015.
After the agreement has been implemented, the licensees will comprise Tullow as operator with 90 per cent and North Energy with 10 per cent. North Energy also has an option to acquire a further 10 per cent interest in the licences.
The contract is conditional on government approval, and its effective date has been set as 1 January 2014.