Enegi unveils new agreement with Azimuth

Independent oil and gas company Enegi has announced that it has reached an agreement to potentially farm out part of block 22/12b in the UK North Sea to Azimuth, a group with which Enegi has an existing relationship.

Independent oil and gas company Enegi has announced that it has reached an agreement to potentially farm out part of block 22/12b in the UK North Sea to Azimuth, a group with which Enegi has an existing relationship.

The block, which is currently 100% owned by Enegi and ABTechnology, contains the Phoenix discovery and a number of potential exploration opportunities.

Under the agreement, Azimuth 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.

This will be done within the first 12 months of signing the agreement.

Alan Minty, Chief Executive Officer of Enegi, said: "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."

Enegi and ABTechnology will retain a 100% working interest in the Phoenix Area.

The share price rose 4.21% to 12.38p by 09:30.

Recommended

Share tips of the week – 24 September
Share tips

Share tips of the week – 24 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
24 Sep 2021
Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021

Most Popular

A nightmare 1970s scenario for investors is edging closer
Investment strategy

A nightmare 1970s scenario for investors is edging closer

Inflation need not be a worry unless it is driven by labour market shortages. Unfortunately, writes macroeconomist Philip Pilkington, that’s exactly w…
17 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
What really causes inflation? Here’s what prices since 1970 tell us
Inflation

What really causes inflation? Here’s what prices since 1970 tell us

As UK inflation hits 3.2%, Dominic Frisby compares the cost of living 50 years ago with that of today, and explains how debt drives prices higher.
15 Sep 2021