Enegi Remains Focused on Production Buoy Strategy
UK junior oil firm Enegi Oil used its interim results statement Monday to reiterate that its focus remains on its ABT Oil & Gas (ABTOG) subsidiary, which is developing a production buoy system that Enegi believes will make certain marginal fields commercial.
Meanwhile, Enegi is also looking forward to progress at its western Newfoundland assets – the development of which has been farmed out to Black Spruce Exploration (BSE).
Enegi CEO Alan Minty commented in a statement
"Having farmed out the development of our assets in western Newfoundland to BSE, the company has focused on the development of the marginal field initiative through ABTOG. Our belief is that ABTOG will create a new sector of the oil and gas upstream market in which stranded or marginal hydrocarbon accumulations, previously considered to have little or no value, will be subject to large increases in value because of the solutions that ABTOG provides.
"We have expended considerable effort in laying the foundations for ABTOG's development and the business model is generating a lot of interest and gaining considerable traction. The scale of the opportunity should not be underestimated but considerable work will be required to access it.
"That is not to say that we do not believe that western Newfoundland still provides a significant opportunity only that, in terms of our efforts and the potential returns for Enegi shareholders, we consider the marginal field initiative to offer greater potential."
Enegi added that ABTOG is currently identifying and evaluating assets available in the 28th Seaward Licensing Round for the UK Continental Shelf (UKCS), where conventional development solutions may not be economically feasible and which are suitable for development using production buoy systems.
Enegi also announced two changes to its board of directors. The firm said that Professor Mike Bowman has been appointed to the board as a non-executive director, while another non-exec director – Alex Lamb – is stepping down.
Bowman has more than 30 years of experience in the field of development and production geology. For most of his career he was employed at BP, where his final position was Vice President of Geoscience and Subsurface, and he is now Professor of Development and Production Geology at Manchester University.
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