EnQuest PLC (‘EnQuest’) today announces that it has completed the acquisition of 25% of the in the UK North Sea blocks 9/2b and 9/2c, including the Kraken discovery, from Nautical Petroleum plc.
This agreement and the associated details of the transaction were announced on 24 January 2012 when Enquest reported it would will pay Nautical between $150 million and $240 million, by way of a development carry arrangement in relation to Nautical’s remaining interest in Kraken.
The amount EnQuest will pay for the acquisition is dependent on a future determination of the gross 2P reserves in Kraken, which will take place sometime after the start of the Field Development Plan drilling phase. If the determination is less than 100 MMboe, EnQuest will only pay $150 million, by way of development carry. If the determination is less than 166 MMboe, but more than 100 MMboe, then the amount of the development carry will be increased by up to a further $90 million, calculated on a linear pro-rata basis. EnQuest will pay the maximum of $240 million if the future determination of gross 2P reserves is greater than 166 MMboe.
Offshore Energy Today Staff, March 16, 2012; Image: Nautical Petroleum