31st Jul 2015 08:19
LONDON (Alliance News) - Enegi Oil PLC shares rose on Friday after it said its joint venture company ABT Oil and Gas Ltd has sourced the "final essential" consortium member for its marginal field initiative.
Enegi shares were up 14.1% to 0.770 pence per share on Friday morning.
Enegi said ABT Oil and Gas, its joint venture with ABTechnology Ltd, has signed a collaboration agreement with global engineering and design consultancy Arup.
Therefore, Arup becomes the latest member of the Marginal Field Delivery Consortium that ABT Oil and Gas has established to assist in the delivery of its marginal field initiative.
The consortium has been established to focus on the delivery of marginal field projects, and Arup will be joining Kongsberg Maritime, Apollo, RMRI, Braemar ACM, AGR and Frames.
"The addition of Arup to the consortium is a very positive step for the initiative as Arup has considerable project management experience that will enhance the consortium's ability to deliver its range of solutions to budget and on schedule," said Enegi.
"Arup is the final essential member of the consortium and their addition significantly enhances our coherent vision of how marginal field projects can be transformed and delivered on time and within budget," said Chairman Alan Minty.
In a separate statement Friday, Minty said Enegi has formulated a strategy that focuses on the marginal field initiative and the joint venture company which are both aiming to create a portfolio of projects to "drive Enegi's value", it said.
Minty said working with a consortium could bring down capital and operational costs of any project undertaken by up to 60% than if it took a project on its own, which is significant in light of lower oil prices that are making more and more projects less or even completely uneconomical.
"A number of projects have already been identified with negotiations under way to enable the projects to be delivered by the consortium," he added.
"The consortium with an aggregate value of circa USD5.0 billion of companies provides significant credibility and expertise to ensure projects are delivered on time, on budget, in order to provide returns for investors and operators," said Minty.
In a third statement Friday, Enegi said it has issued 3.5 million new share to Shore Capital to pay for fees owed and a further 598,224 new shares and 598,425 warrants to London Communications Agency for fees owed related to PR services.
Those warrants issued can be exercised at a price of 1.25 pence per share over the next 24 months.
By Joshua Warner; [email protected]; @JoshAlliance
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