Onshore UK-focused junior producer IGas reported Monday that it has agreed to buy Caithness Oil Limited, a subsidiary of Caithness Petroleum Limited, for GBP 9 million.
The deal will see IGas acquired 100-percent interests in licenses located in the northern coastal area of the Inner Moray Firth, Scotland in which Caithness has an interest.
The licenses cover the Lybster field, which was discovered in 1996 by Premier Oil when well 11/24-1 tested 36-degree API oil at more than 2,000 barrels of oil per day from the Beatrice Formation. The field was put into production in May 2012, when it produced 200 bopd gross and two million standard cubic feet of gas per day of associated gas.
IGas CEO Andrew Austin commented in a company statement:
"I am pleased we have managed to secure this opportunity to increase our existing production and one that offers significant upside potential. The transaction is in line with our strategy to grow our production base in order to fund our exploration activities and to take advantage of accretive acquisition opportunities. IGas continues its strategy of delivering secure hydrocarbons for Britain."
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