31st Jul 2020 13:02
EnQuest PLC - London-based petroleum exploration and production company which operates mainly in the United Kingdom continental shelf - Signs a purchase agreement with Equinor ASA to purchase a 41% equity interest in the Bressay oil field. The initial consideration is GBP2.2 million. EnQuest will also make a contingent payment of USD15 million following the approval of a Bressay field development plan. Under the terms of the agreement, EnQuest will also assume operatorship of the licences following the plugging and abandonment of the 3/28-1 well by Equinor. This is a low-cost addition to EnQuest of up to 115 million barrels of net 2C resources, depending on development concept. There are no gross assets or pretax profit associated with the assets. EnQuest Chief Executive Amjad Bseisu said: "With the addition of up to 115 million barrels of net 2C resources, Bressay provides EnQuest an opportunity to demonstrate its proven capabilities in low-cost drilling, near-field and heavy oil development."
Current stock price: 13.07 pence
Year-to-date change: down 39%
By Greg Roxburgh; [email protected]
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