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

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
The best investment trusts to buy for 2021
Investment trusts

The best investment trusts to buy for 2021

Sectors ranging from emerging markets to student accommodation look poised to do well this year, says David Stevenson, as he picks the best investment…
19 Jan 2021