EnQuest Acquires the Bentley Heavy Oil Field in the UK North Sea
LSE-listed EnQuest Plc has entered into a Share Purchase Agreement (SPA) with UK-based Whalsay Energy Holdings Ltd. to acquire a 100% interest in license P1078, containing the Bentley Heavy Oil Discovery, located in the UK North Sea.
Under the terms of the SPA, EnQuest will acquire a 100% equity interest in Whalsay Energy Ltd. (WEL), a wholly-owned subsidiary of Whalsay Energy Holdings, which holds a 100% interest in the license P1078, in exchange for funding certain accrued costs and obligations of WEL estimated at less than US$2.0 million. In addition, EnQuest will make deferred payments based on future revenues generated by Whalsay, which are capped at US$40.0 million.
P1078 (Block 9/3b) is located in the Northern UK North Sea, approximately 150 km east of the Shetland Islands in water depths of around 113 m. The license contains the Bentley Heavy Oil Discovery, one of the largest undeveloped oil fields in the UK Continental Shelf. 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. The initial work program is based on utilizing a 20-well slot platform, with 17 dual lateral ESP producers and three produced water re-injection wells. The license has proved (1P) reserves of approximately 81 million barrels (MMbbls), with proved + probable (2P) reserves of approximately 131 MMbbls as of June 30th, 2019.
London-based EnQuest is focused on exploration, development and production operations in the UK North Sea and Malaysia.
Headquartered in Leeds, Whalsay Energy is engaged in exploration and development operations in the UK North Sea.
Gneiss Energy acted as financial advisor to Whalsay.
The transaction is subject to customary closing conditions, including the approval of the UK Oil & Gas Authority granting an extension of the existing license term, which is currently due to expire on June 30th, 2021, and the receipt of other third-party approvals.