EnQuest, the North Sea focused oil company, is spending up to $90m for a 20% interest in the Kraken oil discovery in the East Shetland basin.
The transaction will see EnQuest buy two subsidiaries from oil and gas exploration and devlopment outfit Canamens Energy: Canamens Energy North Sea and Canamens UK 814 and 815.
EnQuest will initially pay $45 million dollars in cash and a further $45 million on approval of the Kraken "Field Development Plan" by the Department of Energy and Climate Change.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Amjad Bseisu, Chief Executive of EnQuest, said:
"Using the operator's estimates, the Kraken blocks 9/2b and 9/2c immediately add over 30% to EnQuest's end 2010 contingent resources. It also gives us potential upside from the surrounding exploration opportunities."
Enquest shares rose 2% in morning trading. Over the last 12 months the company's stock has dropped 41%.
BS
-
Older renters £2,000 worse-off than homeowners – the risks of renting in retirementThere are financial risks to renting in your golden years, research suggests
-
Waspi women targeted in fake compensation scamThe Waspi campaign has warned of a steep rise in fraudulent websites which claim compensation is available for 1950s-born women affected by state pension age changes
