Neptune Increases Dugong Stake

Neptune Increases Dugong Stake
Neptune Energy announced an agreement with Concedo AS for the acquisition of a further five percent interest in the Dugong license.

Neptune Energy announced Thursday an agreement with Concedo AS for the acquisition of a further five percent interest in the Dugong license, which is located in PL882 in the Norwegian sector of the North Sea.

Payment for the deal will be partly cash, partly the carry of future cost and partly a contingent payment, Neptune revealed, without disclosing any specific amounts. On completion of the acquisition, Neptune will have a 45 percent stake in Dugong, Concedo will have a 15 percent interest, Petrolia NOCO will have a 20 percent interest and Idemitsu Petroleum Norge will have the remaining 20 percent interest. The transaction is subject to approval by the Norwegian Ministry of Petroleum and Energy.

The Neptune-operated Dugong discovery is the largest on the Norwegian Continental Shelf so far this year, Neptune highlighted. Volumes are estimated to be in the range of 40-120 million barrels of oil equivalent. Neptune and its licence partners plan to drill two additional wells on PL882; an appraisal well on the Dugong discovery and an exploration well targeting the Tail prospect. Drilling is expected to commence in the first quarter of 2021.

Neptune announced the discovery of hydrocarbons at the Dugong well back in July this year. The company has made several discoveries in 2020 so far. In March, Neptune announced that a discovery had been made at the Schwegenheim exploration well in the Rhine Valley, Germany, and at the Isabella exploration well in the UK Central North Sea. During the same month, Neptune made a discovery with the Sigrun East exploration well 15/3-12S & 15/3-12A in PL025/187, near the producing Gudrun field in the North Sea.

Neptune describes itself as an independent global exploration and production company with operations across the North Sea, North Africa and Asia Pacific. The business had a production rate of 144,000 net barrels of oil equivalent per day in 2019 and 2P reserves of 633 million barrels of oil equivalent as of December 31, 2019.

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