Neptune Energy Increases Stake in the Dugong Discovery
Neptune Energy Group Ltd. has entered into an agreement with Norwegian independent E&P company Concedo ASA to acquire an additional 5% interest in PL 882 exploration license located in the Norwegian North Sea. The license contains the Dugong discovery, which contains an estimated 40 to 120 million barrels of oil equivalent (MMboe).
In exchange for the 5% interest in the license, Neptune Energy Norge AS, a wholly-owned subsidiary of Neptune, pay an undisclosed amount payment partly in cash, partly by way of carry of future costs, and partly in contingent fees. Upon completion, Upon completion of the transaction, Neptune will hold an increased 45% operated interest, Concedo will retain a 15% interest, while license partners Petrolia NOCO AS and Idemitsu Petroleum Norge AS will hold a 20% interest each.
PL 882 (Blocks 33/6 and 34/4) covers an area of approximately 187 sq. km in the Norwegian North Sea, located 158 km west of Floro and at a water depth of 330 m. The license contains the Dugong and Tail prospects. The commercial discovery of oil at the Dugong well was announced in August 2020, the largest on the Norwegian Continental Shelf (NCS) so far this year. Gross prospective resources attributable to the Tail prospect amount to approximately 33 MMboe. The current work program includes drilling of an appraisal well on the Dugong discovery and an exploration well targeting the Tail prospect during Q1-2021.
London-based Neptune Energy Group is backed by equity investments from The Carlyle Group, CVC Capital Partners, and China Investment Corp. (CIC). The company is engaged in the acquisition, exploration, development, and production of oil & gas assets in the North Sea, North Africa, and Southeast Asia.
The transaction is subject to customary closing conditions, including the receipt of approval by the Norwegian Ministry of Petroleum & Energy.