Enegi Oil announced Tuesday that, along with its joint venture partner AB Technology, it is farming into Antrim Energy's UK central North Sea license P077, which contains the Fyne field.
A deal between the companies will see Enegi and ABT's joint venture earn a 50-percent interest in the Fyne development upon approval of the development plan for the field by the UK's Department of Energy and Climate Change (DECC).
Fyne has already seen five wells successfully drilled, producing oil at a 25-degree API gravity and achieving free flow rates of up to 4,000 barrels of oil per day. Fyne has proved and probable reserves of 9.9 million barrels. According to Enegu, it can be developed using a buoy-based production technology created by ABT.
Enegi Oil CEO Alan Minty commented in a company statement:
"We are delighted to have entered into this agreement with Antrim. This is an example of how we can use the buoy solution to gain reserves and production in well appraised, and therefore geologically low risk, assets for a fraction of the price of traditional acquisition routes.
"The Fyne field is an ideal opportunity to show the potential of the buoy solution and is an example of how significant value can be unlocked in an asset which would otherwise have remained undeveloped. We look forward to working with the Antrim team to gain FDP approval for Fyne, and unlocking the full value of this project for our mutual benefit.
"We anticipate that this will generate significant interest in the use of buoy technology as a development solution and could be the advent of a new era in the development of the North Sea. The model we have devised would allow us to undertake multiple projects simultaneously in conjunction with Fyne."
In a separate statement Tuesday, Antrim Energy said that it had received consent from DECC to allow for a revised field development plan for the Fyne field.
Antrim CEO Stephen Greer said:
"We are very pleased to receive this consent from DECC. It allows us to continue with and potentially conclude current farm-out discussions with industry partners on the Fyne Field. A relatively low cost solution is being pursued to attempt to bring this fully appraised field to production within the DECC licence schedule."
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