"This transaction is consistent with our strategy of building a balanced portfolio that funds our exploration activities," said William L. Transier, co-chief executive officer. "The acquisition will provide our first production in the United Kingdom and positions us in an area where we hold an extensive seismic base from which to build our portfolio."
Endeavour will pay Petro-Canada approximately $11.6 million at closing. The company's net share of production is expected initially to be 1,300 barrels of oil equivalent per day. Proven plus probable reserves to be acquired in the transaction are estimated to be one million barrels of oil equivalent.
"The Enoch discovery is an excellent reservoir situated near existing production that will facilitate development," added John N. Seitz, co-chief executive officer. "A rig has been secured to drill the production well beginning this summer, which will be tied back to the Brae Field that is nine miles northwest of the discovery."
The Enoch Field is located in Block 16/13a of the United Kingdom Continental Shelf and Block 15/5 of the Norwegian Continental Shelf in water depth of about 370 feet. Endeavour's interest is located on the UK side of the median line and will be subject to UK taxes.
Endeavour expects to close this transaction around year-end, subject to partner and regulatory approvals. Paladin Expro Limited is operator of the field with a 24 percent interest.
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