Seacrest Capital Group-backed energy company Azinor Catalyst has signed an agreement to acquire a 100 percent working interest in UKCS Licence P.1989, which contains blocks 14/11, 14/12 & 14/16, from Norwegian Energy Company UK Limited (Noreco) and Trap Oil Limited.
Under the terms of the agreement Catalyst will purchase a 50 percent working interest from Noreco and a 50 percent working interest from Trap. The company aims to complete the outstanding firm work program obligations on the license and has committed to making certain contingent milestone payments to Noreco and Trap, with drilling activity on the license entirely at Catalyst’s discretion. Completion of the transaction is subject to Secretary of State and DECC (UK Department of Energy and Climate Change) approval.
Nick Terrell, managing director of Azinor Catalyst, commented in a company statement:
“We are extremely pleased to have secured operatorship and 100 percent working interest in the P.1989 License. We have achieved this entry through an innovative structure with low upfront costs and staged payments which share the risk and potential upside in the license among the current working interest holders. Going forward, and given our high working interest position on the license, we will be looking for partners to join us in the drilling of a potential exploration well.
This deal further increased our acreage position in the UKCS and continues our strategy of advancing and unlocking the potential of UK plays and prospects through new data and new technology.”
Andrew Benitz, CEO of Jersey Oil & Gas, said in a company statement:
"We are pleased to announce this farm-out to Catalyst. In line with our stated strategy, Jersey Oil & Gas is actively managing and de-risking its existing exploration portfolio and this transaction ensures that the company maintains exposure to the potential upside from this license, at no further cost to the company."
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