UK, Ireland and Canada-focused junior Enegi Oil announced Wednesday that it is teaming up with Advanced Buoy Technology (ABT) to exploit stranded, offshore oil reserves using ABT's technology.
ABT owns a technology that uses unmanned buoys to access offshore reserves to depths of up to 600 feet.
Under the terms of the deal between the two companies, Enegi and ABT will work together to secure and develop interests in stranded, offshore oil reserves that can be accessed using ABT's unmanned buoy technology. According to Enegi, "significant returns" can be generated on such marginal and otherwise uneconomic fields.
Frank Jackson, a non-executive director at Enegi, commented in a company statement:
"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 unrecognized, high value oil assets which are currently considered to be stranded or marginal despite in many cases being fully appraised. The JV 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 JV 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.
"We already have a good working history with ABT. Last year, we successfully worked together to obtain two offshore licenses in the 27th UK Seaward Licensing Round, by proposing the use of an unmanned buoy as the development solution. This new agreement strengthens the ties between the two companies.
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