Enegi Oil CEO Alan Minty expects a strong 2014 after a year of "excellent progress" in 2013, he said as the junior explorer reported its results Friday.
Enegi saw its business model shift significantly during the year, with the creation of ABT Oil & Gas (ABTOG) in May by Enegi and its partner ABTechnology. ABTOG plans to use a production buoy system that will be deployed on marginal fields where traditional means to extract oil, such as platforms or FPSO vessels, are too expensive to make them commercial.
Enegi said ABTOG will only consider projects that are based on discovered hydrocarbons so as to remove costly exploration risk. The firm said that a current reluctance among financial institutions to fund exploration risk also suggests that the timing of its business model might be preferential to more traditional oil and gas investment models.
During 2013, the joint venture has gained two projects by agreeing to farm into the UK North Sea's Fyne oilfield and the Helvick oilfield and Dunmore discovery in the North Celtic Sea, offshore Ireland.
Meanwhile, engineering firm Wood Group PSN signed up to carry out FEED and pre-FEED studies to facilitate the field development plan for Fyne. Enegi estimates that there are some 261 undeveloped, marginal fields on the UK Continental Shelf alone – containing some 5.1 billion barrels of reserves, that might be suitable for the production buoy system.
Elsewhere, Enegi signed a multi-well farm-in agreement with Black Spruce Exploration (BSE) to accelerate the development of its Newfoundland assets, while the firm also saw two UK Continental Shelf licenses awarded to it in the 27th Licensing Round. Interests in the awarded UKCS licenses have been farmed out to Azimuth, which will conduct an agreed work program that includes geological, geophysical and reservoir analysis utilizing existing seismic and well data.
"The company has made excellent progress in the period under review, but my belief is that 2014 could be even more significant," Minty said in a company statement.
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