British North Sea-focused oil producer EnQuest said it has signed a share purchase agreement (SPA) to purchase Whalsay Energy's 100% equity interest in the P1078 license containing one of the largest undeveloped oil fields in the U.K. North Sea.
Bentley, in Block 9/3b, is located in 113 meters water depth, 150 kilometers east of the Shetland Islands. Whalsay estimates stock-tank oil initially in place (STOIIP) of about 900 MMbbls.
The field was discovered in 1977 and has been appraised through the drilling and testing of six further wells and two sidetracks, including extended well tests in 2012 which delivered production rates of around 3,500 bopd and an average of around 2,600 bopd over a 68 day well test.
The heavy oil field sits 15 kilometers east of the Kraken heavy oil field and 8 kilometers southeast of the Bressay field, both of which are operated by EnQuest, offering long-term potential development opportunities and other synergies, the company said.
EnQuest said the transaction will be effected through the acquisition of Whalsay’s subsidiary, Whalsay Energy Limited (WEL) which holds the license as its only asset, on a cash, liability and debt free basis.
On completion, EnQuest will fund certain accrued costs and obligations of WEL, expected to amount to less than $2 million. No other upfront consideration is payable. EnQuest will make deferred payments to Whalsay based on future revenues generated by WEL which are capped at $40 million.
The deal is subject to the satisfaction several conditions precedent, including the U.K. Oil and Gas Authority granting an extension of the existing license term, which is currently due to expire June 30, 2021, and the receipt of other third party approvals, EnQuest said.
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