EnQuest PLC Agreement to acquire Bentley discovery (5120W)
April 26 2021 - 1:00AM
UK Regulatory
TIDMENQ
RNS Number : 5120W
EnQuest PLC
26 April 2021
EnQuest PLC, 26 April 2021
EnQuest signs SPA for 100% equity interest in the Bentley
discovery
EnQuest PLC (together with its subsidiaries, 'EnQuest'), an
independent oil and gas production and development company listed
on the London and Stockholm stock exchanges (ENQ.L and ENQ.ST), is
pleased to announce it has signed a Share Purchase agreement
('SPA') with Whalsay Energy Holdings Limited ('Whalsay') to
purchase their entire 100.00% equity interest in the P1078 licence
containing the proven Bentley heavy-oil discovery. This discovery
is within c.15 kilometres of the Group's existing Kraken and
Bressay operated interests, offering further long-term potential
development opportunities and other synergies. The transaction will
be effected through the acquisition of Whalsay's subsidiary,
Whalsay Energy Limited ('WEL') which holds the licence 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.
Completion of the transaction is subject to the satisfaction of
a number of conditions precedent, including the UK Oil and Gas
Authority granting an extension of the existing licence term, which
is currently due to expire 30 June 2021, and the receipt of other
third party approvals.
As at 31 December 2019, the date of the most recent audited
accounts, WEL had gross assets valued at around $95 million,
consisting primarily of intangible assets representing historic
capitalised exploration and evaluation activities on the Bentley
licence. For the year ended 31 December 2019, WEL recorded a loss
before tax of around $72 million, primarily resulting from the
recognition of an impairment charge against the Bentley
licence.
Ends
Notes to editors
Bentley is a heavy oil field in the UK North Sea located in 113
metres water depth, 15 kilometres east of the Kraken heavy oil
field and 8 kilometres southeast of the Bressay field, both of
which are operated by EnQuest. Bentley is one of the largest
undeveloped oil fields in the UKCS with the current operator
estimating stock-tank oil initially in place ('STOIIP') of c.900
MMbbls. The field was discovered in 1977 and has been appraised
through the drilling and testing of 6 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.
For further information please contact:
EnQuest PLC Tel: +44 (0)20 7925 4900
Amjad Bseisu (Chief Executive)
Jonathan Swinney (Chief Financial Officer)
Ian Wood (Head of Communications and Investor Relations)
Jonathan Edwards (Senior Investor Relations and Communications
Manager)
Tulchan Communications Tel: +44 (0)20 7353 4200
Martin Robinson
Martin Pengelley
ENQUEST
EnQuest is providing creative solutions through the energy
transition. As an independent production and development company
with operations in the UK North Sea and Malaysia, the Group's
strategic vision is to be the operator of choice for maturing and
underdeveloped hydrocarbon assets by focusing on operational
excellence, differential capability, value enhancement and
financial discipline.
EnQuest PLC trades on both the London Stock Exchange and the
NASDAQ OMX Stockholm.
Please visit our website www.enquest.com for more information on
our global operations.
Forward-looking statements: This announcement may contain
certain forward-looking statements with respect to EnQuest's
expectations and plans, strategy, management's objectives, future
performance, production, reserves, costs, revenues and other trend
information. These statements and forecasts involve risk and
uncertainty because they relate to events and depend upon
circumstances that may occur in the future. There are a number of
factors which could cause actual results or developments to differ
materially from those expressed or implied by these forward-looking
statements and forecasts. The statements have been made with
reference to forecast price changes, economic conditions and the
current regulatory environment. Nothing in this announcement should
be construed as a profit forecast. Past share performance cannot be
relied upon as a guide to future performance.
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