Venture Acquires Additional Interest in the Pilot Field
Venture Production has entered into an agreement to acquire Eni's interests in Blocks 21/27a (including the Pilot discovery) and 21/27b. This acquisition will take Venture's stake in Pilot from 47.5% to 80%. Venture is the operator of both 21/27a and 21/27b.
The consideration comprises a nominal cash payment on completion.
Pilot is a shallow, heavy oil discovery approximately 41km south of the Venture operated Kittiwake platform. It was discovered in 1989 and to date five exploration and appraisal wells have been drilled. Venture has contracted the Fugro Bucentaur survey drillship to drill a further appraisal well on the Pilot field during summer 2006. If successful the same drillship will drill a further appraisal well into the 28/2-1 discovery in the adjoining block 28/2 (Venture 100%) which was awarded to Venture in the 23rd licensing round in 2005.
Prior to this transaction Venture has recognized 10.1 million barrels of proven and probable reserves (net to Venture) in respect of its existing 47.5% interest in the Pilot discovery. The transaction announced today will add a further 7 million barrels of proven and probable reserves.
Completion remains subject to DTI and other customary regulatory and partner approvals.
Commenting on the news, Mike Wagstaff, Chief Executive of Venture said:
'Venture is pleased to have the opportunity to increase our interest in the
Pilot discovery. Combined with this year's appraisal drilling program with the
Fugro Bucentaur we see significant scope to refine our reservoir model and add
value to these assets in 2006. The viability of heavy oil development has
already been demonstrated in the North Sea. With oil prices materially higher
than when we acquired our initial interest in Pilot this discovery represents an
attractive development opportunity'.
Operates 11 Offshore Rigs
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