The total consideration for the transaction is £200 million, inclusive of capital allowances, which has been financed through a combination of bank debt and internal resources. The revenues and activities of Schooner and Ketch will be recognised in Tullow's accounts with effect from 1 April 2005.
The producing interests acquired comprise a 90.35% interest in the Schooner field and a 100% interest in the Ketch field. The fields have been in production since 1996 and 1999 respectively, with gas transported to the Theddlethorpe terminal via the Caister-Murdoch System ("CMS") infrastructure in which Tullow has a 17% interest. In addition to the producing assets, Tullow has also acquired minority interests in the Topaz, Marjan, and 44/27-1 discoveries.
An update outlining Tullow's anticipated work program for these assets will be provided as part of the Group's annual results presentation on April 12, 2005.
Aidan Heavey, Tullow's Chief Executive commented:
"We are delighted to have completed the Schooner and Ketch acquisition, enhancing our already significant acreage position in this part of the Southern North Sea. We look forward to taking control of the assets and commencing a work programme designed to materially increase production and reserve recovery over the coming years."
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