Enegi Oil joins forces with Advanced Buoy Technology

UK North Sea-focused oil and gas company Enegi Oil has entered into a joint venture agreement with Advanced Buoy Technology (ABT).

Under the terms of the joint venture, the two companies will work together to secure and develop interest in stranded, offshore oil reserves.

ABT's unmanned buoy technology will provide access to offshore reserves to depths of 600 feet.

"The joint venture provides Enegi with a unique opportunity to accelerate the growth of its asset portfolio by providing a cost effective means to access unrecognised, high value oil assets which are currently considered to be stranded or marginal despite in many cases being fully appraised," said Non-Executive Director of Enegi, Frank Jackson.

"The joint venture partners are appraising projects which are available and appropriate to the technology and are currently unable to be economically developed by conventional production systems. This joint venture will enable its partners, Enegi and ABT to secure bookable reserves, at a relatively low cost, building a niche but growing position in the upstream sector without taking on any excessive exploration and appraisal risk or extraordinarily additional capital exposure."

Shares in Enegi rose 1.37% to 9.25p at 10:32 Wednesday.

RD