Corporate M&A

Tailwind Energy Acquires Decipher Energy

By Isha Makkar
April 01, 2021
2 minutes read
Offshore Oil Rig

London-based Tailwind Energy Ltd. has entered into an agreement to acquire 100% of privately-held Decipher Energy Ltd., which holds 100% operated interests in licenses P1606 (containing the Orlando field) and P2311 (containing the Senna discovery) in the UK North Sea. The terms of the transaction have not been disclosed.

Decipher Energy is engaged in exploration and development activities in the UK North Sea. The company is primarily focused on licenses P1606 and P2311. Decipher also holds a 100% operated interest in license P2448, which contains the Mansell field.

Awarded in 2009, License P1606 (Block 3/3b) contains the Orlando field and is situated between the Ninian, Strathspey, Brent, and North Alwyn fields. The field is expected to produce at a plateau rate of 10,500 barrels per day (b/d) with base case reserves of 8 million barrels of oil equivalent (MMboe). The field is estimated to have gross proved plus probable (2P) reserves of approximately 10 million barrels (MMbbls).

License P2311 (Blocks 3/7c, 3/8c, and 3/12) was awarded in 2017, and contains the Senna discovery, situated south of the Ninian and Columba fields and west of the Dunbar field. The peak production potential from a three-production well development is 24,000 b/d, with estimated gross 2C contingent resources of approximately 60 MMbbls.

Awarded in 2018, License P2448 (Block 3/8g) contains the Mansell field (previously known as the Staffa field), and is located within 11 km of the Senna discovery. The field has estimated 2C contingent resources of 16 MMboe.

“This acquisition will allow Tailwind to continue to deploy its strategy of exploiting organic production and near-term reserves growth opportunities whilst building out the Tailwind portfolio,” the company said in a statement.

Privately-held Tailwind Energy is backed by an equity investment from Mercuria Energy Group. The company is focused on the acquisition and optimization of producing and near-term development assets in the UK North Sea.

The transaction is subject to customary closing conditions, including the receipt of statutory, regulatory, and government approvals.

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