Enegi forms farm-out agreement with Azimuth

Independent oil and gas company Enegi has reached an agreement to potentially farm-out to part of block 3/23 in the UK North Sea to Azimuth, an exploration and production company based in Bermuda.

Independent oil and gas company Enegi has reached an agreement to potentially farm-out to part of block 3/23 in the UK North Sea to Azimuth, an exploration and production company based in Bermuda.

Under the agreement Azimuth will earn a 50% interest in the exploration area, which contains the Malvolio prospect, in exchange for the completion of an agreed work programme that includes certain geological, geophysical and reservoir analysis on both the Malvolio Area and the wider exploration area.

This work will take place within the first 12 months of singing the agreement.

Alan Minty, Chief Executive Officer of Enegi, said: "We are delighted to have reached agreement with the Azimuth team. We were only offered this block just over three months ago and the fact that we are already moving ahead with our plans for it shows our desire to deliver and prove up the value that we believe is inherent not only in this asset, but also across our portfolio.

"We know the Azimuth team well and are delighted to be working with them on this project. They are a hugely experienced team backed by leading industry specialists with access to extensive resources, both in terms of data and people.

"The combination of our two companies and evaluating both the block's exploration opportunities and its known discovery is without a doubt the optimum way forward. We look forward to working with the Azimuth team and utilising their expertise across this project."

The share price rose 6.02% to 11p by 14:20.

NR

Recommended

Share tips of the week – 22 October
Share tips

Share tips of the week – 22 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
22 Oct 2021
Three dividend stocks from the dynamic Asia/Pacific region
Share tips

Three dividend stocks from the dynamic Asia/Pacific region

Professional investor Sat Duhra of the Henderson Far East Income investment trust highlights three of his favourite stocks.
18 Oct 2021
Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021
Trading: stash the family cash in this cheap wealth management firm
Trading

Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to pl…
12 Oct 2021

Most Popular

How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021
How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021
The after effects of the gas-price shock
Economy

The after effects of the gas-price shock

In the wake of the recent spike in the natural gas price, we can expect slower growth, an industrial recession – and a newly assertive Russia, says Ma…
17 Oct 2021