Enegi, the independent oil and gas company, announces that it has reached agreement with Azimuth Limited with a view to farming-out part of Block 22/12b , in the UK North Sea, to Azimuth.
The Block contains the Phoenix discovery with the remaining acreage on the Block being made up of potential exploration opportunities. Under the agreement, Azimuth, given their extensive exploration expertise, will earn a 50% interest in the Exploration Area in exchange for the completion of an agreed work programme that includes certain geological, geophysical and reservoir analysis utilising existing seismic and well data in respect of both the Phoenix Area and the Exploration Area. The above transaction is subject to completion of documentation and all appropriate regulatory approvals.
– Enegi and ABTechnology will transfer a 50% interest in the Exploration Area to Azimuth, or its appointed affiliate
– In return, Azimuth agrees to undertake all the geological, geophysical and reservoir work to assess the hydrocarbon potential of the Exploration Area within the first 12 months of signing the agreement
– Enegi and ABT will retain a 100% working interest in the Phoenix Area
– The work to be undertaken also includes agreed geological, geophysical and reservoir analysis over the Phoenix Area
– Azimuth is a well-funded, rapidly growing E&P company backed by Seacrest Capital, a Bermuda based energy investment group. Azimuth has extensive technical capabilities and expertise of exploration projects and is focused on creating value rapidly through technical excellence.
Alan Minty, CEO of Enegi Commented:
“This is the second farm-out agreement that we have completed with Azimuth and we are delighted to be working with them and have access to their extensive exploration expertise on both our North Sea assets.
Both deals are completely in line with our strategy of de-risking our portfolio whilst maintaining a significant interest in work programmes which we believe have the ability to deliver value to the Company for a minimal capital outlay.
These are very exciting times for Enegi as we progress our projects across our entire portfolio.”
David Sturt, SVP of Azimuth commented:
“Azimuth is excited to be progressing its relationship with Enegi by entering into this agreement over the Exploration Area of Block 22/12b. The agreement between Azimuth and Enegi allows both parties to leverage their core strengths in creating value for their shareholders. The structure of the deal allows the full potential of the block to be realised by highly motivated and dynamic partners.
We believe that new technology and new concepts can unlock significant value in the North Sea, which contains substantial yet to find resources. We are actively exploring throughout the North Sea and West of Shetland and pursuing additional exciting opportunities to extend our portfolio.
Across its portfolio Azimuth is focused on creating value rapidly by combining the potential of new technology with extensive exploration experience. Co-operation between Azimuth and Enegi is excellent and we are excited to progress the exploration of Block 22/12b without delay.”
Press Release, February 11, 2013